The S&P 500 continues to go back and forth during the training session on Monday, as we see a lot of back and forth. Ultimately, the market has nowhere to be longer-term, at least not until we can break above the 3100 level. If we can break above that level, then it is likely that the market could go looking towards the 3400 level. On the other hand, if we were to break down below the blue 200 day EMA, then it is possible that the 50 day EMA will continue to offer support as well. At this point, the market looks as if it is stock, so that is how I would perhaps look at this.
S&P 500 Video 02.06.20
Looking at the chart, I can see that it is probably best to wait for an impulsive candle to put any serious money to work, unless of course you have the ability to trade the market back and forth in short-term increments. That might be a decent way to trade the market, but in the meantime we have a lot of questions when it comes to the ratcheting up of the US/China trade tensions, riots in the United States, and the pandemic numbers that will almost certainly spike later this year.
At this point, expect a lot of noise and therefore it is likely that the market will eventually make a bigger move, but we are most certainly at an area where you would expect to see a lot of trouble. Regardless, keep your position size small.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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