Will The S&P 500 Make Record Highs This Year?
The potential impeachment of President Trump coupled with the White House deliberating over delisting Chinese shares from the US markets could result in unexpected turbulence in the markets.
Such news events can have a negative or positive effect on the markets. But it can be almost impossible to predict the effects these events may have, which is why we always want to allow these events to pass and take trades only once the turbulence has subsided.
Monitoring the news when making trading decisions can have a negative effect on our trading results. We mainly focus on the technical side of trading as opposed to the fundamentals because price action is more important and gives us a clear indication of how the market is performing.
Let's now look at the charts for the S&P 500.
On the monthly timeframe, price is trading above last year's high which was at $2,940. This is significant because that level may act as a strong area of support helping to push price up. We still need to see price comfortably break through the $3,000 round number.
With the weekly timeframe, price is trading above the 50 & 200 simple moving averages (sma). The last contact price made with the 50sma was back in June 2019 where it acted as support, helping to push price up to where it is now.
Going to the daily chart which you can currently see, it shows price attempting to tackle the previous all-time high of $3,028 on September 19th 2019.
The sellers started to gain control causing price to fall through the support level from the May 1st 2019 high at $2,954. Price almost came down to the daily 50sma before making its way back up to where it currently stands at around $2,954 which is now a resistance level. If price has enough momentum to comfortably break through this level then we want to see the $3,000 round number broken, followed by the previous all-time high at $3,028.
Looking at the bigger picture, the US market is bullish overall and if $3,028 is broken, then we should be in store for a continuation of the bull trend.
News items can affect the markets over the short-term but the longer-term trend is usually unaffected. We will be standing aside until the S&P 500 creates a new all-time high.
If and when this occurs, we will then look for opportunities for long trades in the stock market.
As always, keep it simple, keep it Sublime.
Such news events can have a negative or positive effect on the markets. But it can be almost impossible to predict the effects these events may have, which is why we always want to allow these events to pass and take trades only once the turbulence has subsided.
Monitoring the news when making trading decisions can have a negative effect on our trading results. We mainly focus on the technical side of trading as opposed to the fundamentals because price action is more important and gives us a clear indication of how the market is performing.
Let's now look at the charts for the S&P 500.
On the monthly timeframe, price is trading above last year's high which was at $2,940. This is significant because that level may act as a strong area of support helping to push price up. We still need to see price comfortably break through the $3,000 round number.
With the weekly timeframe, price is trading above the 50 & 200 simple moving averages (sma). The last contact price made with the 50sma was back in June 2019 where it acted as support, helping to push price up to where it is now.
Going to the daily chart which you can currently see, it shows price attempting to tackle the previous all-time high of $3,028 on September 19th 2019.
The sellers started to gain control causing price to fall through the support level from the May 1st 2019 high at $2,954. Price almost came down to the daily 50sma before making its way back up to where it currently stands at around $2,954 which is now a resistance level. If price has enough momentum to comfortably break through this level then we want to see the $3,000 round number broken, followed by the previous all-time high at $3,028.
Looking at the bigger picture, the US market is bullish overall and if $3,028 is broken, then we should be in store for a continuation of the bull trend.
News items can affect the markets over the short-term but the longer-term trend is usually unaffected. We will be standing aside until the S&P 500 creates a new all-time high.
If and when this occurs, we will then look for opportunities for long trades in the stock market.
As always, keep it simple, keep it Sublime.
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