Connect with us

Hi, what are you looking for?

Breaking News

S&P 500 Forecast: Looking for Support – 24 February 2020

The S&P 500 has pulled back a bit during the trading session on Friday, breaking below the bottom of the hammer candlestick that had formed on Thursday. That’s an ominous sign, because it then turns the hammer into a “hanging man”, which is a negative sign. Nonetheless, I think that we still have plenty of support underneath and therefore I’m looking at the chart for signs of support that we can take advantage of.

The 3300 level underneath is massive support, based upon both structural and psychological influence. The 50 day EMA is sitting just below there, and I think it could also offer a significant amount of support. After that, the uptrend line of course offers support just below there. The S&P 500 has enjoyed quite a bit of inflow from overseas as people try to get away from issues when it comes to Asia or the European Union. That being said, people are looking towards US companies, especially bigger blue-chip companies, as a bit of a safety trade.

Advertisement

Great trade opportunities are waiting – don’t wait to profit from this pair!

TRADE NOW

The market is extraordinarily bullish in general, so I don’t have any interest in trying to short this market, at least not until we break down below the uptrend line at the very least. Even then, I think that there is plenty of support all the way down to the 200 day EMA which is currently at the 3078 level. Ultimately, this is a market that I think you continue to look at as one that you should be buying on the dips, and therefore that’s exactly how I’m going to trade it. I think the 3400 level above is significant resistance, but a pullback should find enough buyers underneath to build pressure that could accelerate this market right through that level. If we can get above the 3400 level, then it’s likely that we go down to the 3500 level next, which is my longer-term target. Yes, the Friday session was very ugly, but at the end of the day it’s something that we needed to have happen in order to offer a little bit of value. I think that a lot of this is simply a value hunting and digesting going on. As the world went into the weekend it’s not a huge surprise to think that people would be stepping away from stocks in general. There could be a news event over the weekend that sends stocks tumbling in this type of environment, so caution isn’t a surprise.

Sp 500

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Breaking News

Cryptocurrency News6 hours ago (Feb 26, 2020 09:11PM ET) Ethereum Falls 10% In Selloff Investing.com – Ethereum was trading at $217.78 by 21:10 (02:10...

Breaking News

Politics9 hours ago (Feb 29, 2020 10:54PM ET) WASHINGTON (Reuters) – Billionaire environmentalist Tom Steyer, a fierce critic of President Donald Trump who had...

Breaking News

Stock Markets10 hours ago (Mar 08, 2020 05:35AM ET) (C) Reuters. Logo of Aramco is seen as security personnel stand before the start of...

Breaking News

Politics1 hour ago (Jun 02, 2020 05:46PM ET) 2/2 (C) Reuters. National Opioid Summit in Washington 2/2 By Mark Hosenball (Reuters) – The Democrat...

Disclaimer: TheFreedomRight.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2020 The Freedom Right. All Rights Reserved.