The S&P 500 rallied significantly during the trading session on Wednesday as we continue to see a lot of chop back and forth heading into the US/China trade war negotiations. The 2940 level has been crucial more than once and of course we have the 50 day EMA just above that could cause some issues as well. I like the idea of a short-term range bound trading, and I don’t think that we really go anywhere until the negotiations are over.
S&P 500 Video 10.10.19
The 200 day EMA underneath has been offering support, just as the uptrend line has. To the upside, the 50 day EMA and the 2940 level offers significant resistance. If we were to break to the upside, then the market might go looking towards the 3000 level after that. That’s an area that should cause a lot of resistance as well, but one thing that you should pay attention to is that regardless of all of the noise that we have been dealing with, the market should continue to go higher if you believe in the trendlines. Yes, it’s very noisy out there, but prices are higher now than they were in June. I doesn’t mean that it’s been easy, but over the longer-term if you simply bought and hold, you’ve made some money this year. Until that changes, or perhaps we break down below the trend line, you have to believe that the buyers are going to return. Granted, the US/China situation could throw a wrench in the works, but earnings season starts next week, so it’s only a matter time before the buyers come back.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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