S&P 500 Price Forecast – S&P Futures Finding Support at Big Figure

Christopher Lewis
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The S&P 500 broke down below the 3400 level in the E-mini contract during the trading session on Monday and what would have been very thin liquidity due to the fact that it was Labor Day in the United States. At this point, the 50 day EMA is sitting just underneath, and could offer a significant amount of support as it is sitting at the 3317 level. Nonetheless, we are in an uptrend and we are trying to hang on to the overall attitude of the market, so if we can break above the top of the candlestick from the Friday session, then we are more than likely going to go looking towards the 3600 level.

S&P 500 Video 08.09.20

However, if we break down below the 50 day EMA then I think there is even more support near the 3200 level. That is a level that has been structurally supportive and resistive in the past, so it would make a bit of sense that there was a significant amount of “market memory” in this area. I have no interest in shorting this market, because quite frankly it is built to go higher over the longer term, and of course there is no point in fighting the overall trend that has been so heavily driven by liquidity coming out of the Federal Reserve. All things being equal, I am a buyer of dips and I believe that the Tuesday session will be rather crucial due to the fact that is the first day after the major selloffs from last week.

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This article was originally posted on FX Empire

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