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S&P 500 Price Forecast – Stock markets quiet on Monday

Christopher Lewis

It’s a continuation on Monday of the general malaise that we have seen for a couple of weeks in the S&P 500 as the same levels are still very much in play. For example, the 2950 level underneath features a massive gap that has yet to be filled. That in and of itself is a very bullish and supportive level because of that. If we were to break down below the 2950 handle, then the 50 day EMA comes into the picture, just below as pictured in red on the chart.

S&P 500 Video 23.07.19

To the upside, we have the recent highs and of course the psychologically significant 3000 level. Somewhere between the 3000 and 3010, we could see some selling pressure. We are in the midst of her earnings season, but quite frankly most investors are either worried about vacations, or the Federal Reserve. Federal Reserve interest rate policy has much more to do with the stock markets than the companies that make up the index and their earnings. As long as there is cheap money, stocks will continue to find a bid, but clearly people are waiting to see what the Federal Reserve does, or perhaps more importantly whether or not the sound doubly sure hawkish after the July meeting. With the blackout period coming into play, you won’t be hearing anything coming out of Federal Reserve governors, meaning that we could have a pretty sideways market for the short term as we await more information.

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This article was originally posted on FX Empire