The S&P 500 fell a bit during the trading session on Tuesday, reaching back towards the 2950 level. This is an area that was significant resistance previously, as it was the top of the overall consolidation pattern that the market had been in. Ultimately, this market has been very volatile, and will continue to be sold going forward. Because of this, it’s very likely that we will see signs of support underneath as the 50 day EMA should come back into the scenario, offering plenty of support. To the upside, I see plenty of psychological resistance in the form of the 3000 handle, and it’s likely that traders will try to get involved and break through there. At this point, if we were to break down through the 50 day EMA then we could open up the door to the 200 day EMA.
S&P 500 Video 11.09.19
One thing is for sure, it’s almost impossible to trade based upon anything other than short-term technicals, as the fundamental situation is a huge moving target. Overall, this is a market that I think continues to be very noisy but it is still technically in an uptrend. Clearly, you cannot hang onto a position for very long as it only takes one Tweet or headline to throw the markets into disarray. The massive amount of volatility by machines trading continues to be one of the biggest problem traders face these days and has only made things worse over the last several years. It has especially been true over the last several days.
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This article was originally posted on FX Empire
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