The S&P 500 has fallen rather hard during the trading session but remains above the crucial 2800 level. As long as we can stay above there, it’s possible that we hold on for gains. Overall though, this is a market that continues to be very difficult to hang onto, because quite frankly it is being pushed around by machines reading headlines at this point. The 2800 level will of course attract a lot of attention, so if it gets broken down below the next argument will be at the 200 day EMA, which is pictured in blue on the chart.
S&P 500 Video 14.05.19
Looking at this pair, we are still in and uptrend, and even though we have sold off rather drastically the fact that the trade war is heating up seems to be held in check as far as panic is concerned. Yes, this is a very negative candle stick, but at this point it looks like there is still plenty of fight to the upside so I’m not looking for any type of meltdown.
To the upside, a move above the 2900 level would be strong, and could send this market looking towards the 2950 level. A move above the 2950 level, we could see the market go looking towards the 3000 level which is a longer-term target for quite a few traders out there and not the least of which would be the analytical community and Wall Street. All things being equal, I suspect we will get a bounce sooner rather than later.
Please let us know what you think in the comments below