The S&P 500 fell a bit during the trading session but found enough support at the uptrend line to continue to show signs of life. At this point in time it looks as if the S&P 500 continues to show a lot of resiliency, so it looks very likely that we may try to take out the 2900 level above. If we do, it’s very likely that this market will go back towards the highs. There are a lot of fears when it comes to the US/China trade relations, so obviously those headlines continue to throw the market around like a ragdoll.
S&P 500 Video 09.05.19
If we do break down below the uptrend line underneath, it’s likely that we will probably drop down to the 2800 level, an area that should be rather supportive as there is also the 200 day EMA underneath there. So having said that I think that the path of least resistance is probably higher, but I also recognize that we are going to have a lot of noise due to the US/China trade talks and of course Twitter. With that being said, it looks as if the market has shaken off some of its frothing as, and that it’s ready to go to the upside now.
I expect the 2950 level to be very difficult to break above, but if and when we do, we should go looking towards the 3000 handle as many on Wall Street fully anticipate seeing in the next few months.
Please let us know what you think in the comments below