The S&P 500 and it’s done nothing during the trading session on Monday as we continue to dance around the 2700 level waiting for some type of conclusion to the US/China trade relations. Quite frankly, I don’t think that anything happens other than possibly some type of “kick the can down the road” solution. If that’s the case that’ll be good for the markets, but this looks like a market that’s running into a massive resistance here, so I would not be surprised at all to see a pullback.
The 2600 level underneath should be massively supportive, and if we were to break down below there I think the market really could come apart. I believe that the market is at a major precipice right now, and we could see some type of violent move. If we get a break above the Friday candlestick, then we could go looking towards the 2800 level. Otherwise, I would anticipate that this is a market that continues to struggle to find direction, and it probably won’t be until towards the end of the week that we get some clarity. Headlines will move the market as Robo traders continue to destroy flow in the financial markets. If we can break down below the 20 day EMA, that’s probably your first sign that we are going to go lower. Otherwise, if we break above that move to the 2800 level, then we could continue a longer-term move. At this point though, I don’t expect to see it.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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