S&P 500 Price Forecast – Stock markets hit on Thursday

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The S&P 500 broke down rather significantly during trading on Thursday, as we head into the trade discussions. However, we are starting to see a little bit of volume pick up the market at the gap that we just touched near the 2840 handle, so the question is whether or not we can break back above the uptrend line. Quite frankly, with the US/China trade relations going on, you are probably better off to step away from this market until we get some type of resolution as to what they decide.

S&P 500 Video 10.05.19

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If they don’t come to an agreement, this market is going to fall right out of bed and had to 2800. That of course makes for a very dangerous situation. On the other hand, if we recapture the uptrend line, and they get some type of an agreement, we could rally quite stringently. In the next 24 hours, this market is going to be extraordinarily dangerous and volatile, so with that being said at the very least you should keep your position size small.

I believe that by the end of the day on Friday, it’s very likely that we will know where we are going to go for a longer-term move. I believe that you should pay attention to the weekly analysis at the end of the day Friday that I give, because it should give us a little bit more clarity as to where we are going. In the short term, we are still technically in and uptrend but we are most certainly in a lot of trouble.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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