The S&P 500 went back and forth during the trading session on Friday, as the 3100 level has offered resistance again. We did try to get above it on Thursday but then gave back quite a bit. On Friday we have gone back and forth showing a lot of momentum trying to build up to go higher, and at this point we simply don’t have enough momentum to do so. Beyond that, there will be a lot of options traders hedging in the futures market, as we approach yet another large, round, psychologically significant figure.
S&P 500 Video 11.11.19
All things being equal, I believe that the market probably pulls back from here to find some support underneath that we could take advantage of. Ultimately, this is a market that will continue to be bullish longer-term so finding value is probably the best way to trade this market. The 50 day EMA is sitting below the 3000 level and getting close to that support range that I have marked on the chart as well, so I do feel that if the market starts to fall, the best thing you can do is simply sit on the sidelines and wait to see signs of a bounce in order to start going long.
Looking at this chart, if we were to break down below the 3000 level, we could drop a bit further, perhaps trying to get to the 200 day EMA which is marked in blue on the chart. That being the case though, it would be an absolutely brutal selloff, and would take quite a bit more mettle to place the trade.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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