S&P 500 Price Forecast – Stock markets get slammed back and forth

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The S&P 500 has initially tried to rally during the trading session on Friday, but got hammered again as we continue to worry about the US/China trade relations. With the Chinese negotiators walking out relatively early in the day and no news, there is a lot of speculation that things are going to roll over. That being the case, we could then go down to the 2800 level underneath. That’s an area that has been supportive, but if we get negativity coming out of the actual trade situation, then I think we will test the 200 day EMA which is pictured in blue on the chart.

S&P 500 Video 13.05.19

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Overall though, if we make a move back above the uptrend line you would have to assume that there is a massive amount of buying pressure underneath that should continue to levitate this market. Overall though, this is a market that is on the precipice of breaking down. It should be pointed out that we have broken below the bottom of the hammer from the Thursday session, and at this point you would have to favor the downside but quite frankly I think this market could go either way. I would be waiting until Monday to trade this market, waiting to see which side we break out on and then simply follow as the momentum could get rather quickly. The reality is that the markets about to make a huge move, so you should have plenty of time to get involved.

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This article was originally posted on FX Empire