S&P 500 Price Forecast – Stock markets look resilient

The S&P 500 went back and forth during the trading session on Friday, breaking down initially but showing a little bit of resiliency to stay above the 50 day EMA. The 2980 level is rather crucial, but even more important to me is the 50 day EMA underneath at the 2950 level that has been offering support. If we can break above the top of the candle stick from the Thursday and Friday sessions, then we probably go back towards the highs. So far, the one thing that seems to be working is the “buying on the dips” attitude that we have seen the lot of action like that over the days.

S&P 500 Video 30.09.19

If we did break down below the 2950 level, then the market could probably go down to the 2900 level, possibly even the 200 day EMA underneath which is painted in blue. I don’t think it happens very quickly though, because quite frankly even with all of the negativity out there that the markets continue to show signs of strength is a testament to the resiliency of the buyers. Overall though, I think that we are eventually going to break to the upside because if nothing else the Federal Reserve is probably going to save the market if it needs to. If we get some type of good news out of the US/China trade situation, this thing could take off to the upside again.

Please let us know what you think in the comments below