S&P 500 Price Forecast – stock markets continue to show resiliency
The S&P 500 initially pulled back during the trading session on Thursday but found enough support at the 20 day EMA to turn things back around and rally a bit. I think that the 2600 level continues to offer major resistance though, so expect to see a lot of volatility in this area. The 50 day EMA is just above there as well, so it will probably also cause a bit of trouble. Looking at this chart, I think that a break above the 50 day EMA is a massive buying signal and could get the momentum really start to fly here. I think that signs of exhaustion though could also be a selling opportunity. I think the next couple of days are going to be crucial in this market, and quite frankly you are probably better off simply standing on the sidelines and waiting for a little bit of clarity before we put money to work.
S&P 500 Video 11.01.19
If we do break down below the 20 day EMA, then I think the 2500 level will probably be targeted, perhaps even the 2400 level after that. Alternately, if we break above the 50 day EMA I think that the target initially will be the 2700 level, possibly even the 2800 level. A lot of this is going to come down to the US/China situation, as the Federal Reserve release looks to be flexible at this point, and that has given a bit of relief to the markets in the meantime. One thing I think you can count on is choppiness.
This article was originally posted on FX Empire