Advertisement

S&P 500 Price Forecast – Stock Markets Reaching Towards 50 Day EMA

The Globex session was rather good for the S&P 500 in New York picked up the ball where the rest the world left it. The market raced above the 50 day EMA, but it still has a lot of work to do just above. In fact, there is a lot of noise between here and the 3400 level so I would not get overly excited quite yet. Rather than jumping “all in”, I think it is much more prudent to simply look at short-term dips as potential buying opportunities on short-term charts. I stated on Friday that I thought it is possible that we may end up being in a 200 point range, and this chart does of course suggest that still.

S&P 500 Video 29.09.20

To the downside, I see the 3200 level as being rather crucial in the bounce that we have seen from there is somewhat impressive. To the upside, I still see the 3400 level as something that is going to be difficult to breach, and with the presidential elections coming so soon it is likely that we stay in this area until we get something along the lines of a larger catalyst to get the markets moving. Right now, we do not have it, so I think this is a range bound play at best, looking at dips as potential value. If we were to break down below the 3200 level, then the next place the people will be looking to buy is at the 200 day EMA, currently sitting at the 3134 level. As far as selling is concerned, once we break down below there, we will more than likely race towards the 3000 handle.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: