The S&P 500 fell during the day on Tuesday, filling the gap from the weekend, and we are approaching the 50 day EMA. That of course makes this a very interesting place to be, and although the CFD markets will be open during the day on Wednesday, the United States won’t have stock markets trading due to the day of remembrance for former President George HW Bush. That being the case, I think that the CFD markets will be able to be traded, but when I look at the overall picture, there are some other things that I can pay attention to.
S&P 500 Video 05.12.18
I believe at this point, the 2750 level is very crucial, and if we can stay above there then it’s probably only a matter of time before we rally. However, if we break down through that level, I think that we would probably see an escalation of the downside, perhaps reaching towards the lows again which is roughly 2640. In general, I think that the market is at the precipice of making some type of decision, but we need to be patient enough to let the market make that decision. Because of this, stay out of the market, even if it is the CFD market during the day on Wednesday, and let the underlying asset determine where we go next. If we can hold 2750 then I think we make a serious run at the highs again. If we don’t, then it’s time to start selling. Let the daily close dictate where you put your money.