The S&P 500 went back and forth during the trading session on Friday, as we continue to dance around the 200 day EMA. By doing so, it looks as if the market is essentially done for the moment. The Memorial Day holiday is much more likely to attract attention than the markets themselves. We are sitting close to the top of the overall range, and of course the 200 day EMA attracts all kinds of buying and selling. Quite frankly, the market looks as if it is essentially stuck at the top of a range, and of course with Monday being closed there is a lot to do in the actual index itself.
S&P 500 Video 25.05.20
This does not mean that futures will be open, they will be later in the day, but it is likely that the 3000 level above will also offer quite a bit of psychological resistance as well. If we were to break above there, the S&P 500 is likely to go looking towards the 3100 level. To the downside if we were to break down below the bottom of the candlestick from the Friday session, then it could open up a move down to the 50 day EMA, possibly even down to the 2800 level. Ultimately, I think the one thing you can probably count on more than anything else is a lot of choppiness. The market is rather indecisive, but it is starting to look more and more like we could be trying to form a bit of a rounding top.
This article was originally posted on FX Empire
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