The S&P 500 has struggled a bit during the trading session on Friday but should continue to find the same type of support near the 3000 level that we had witnessed previously. The 50 day EMA is in the same area, so I think it is only a matter of time before buyers reenter. Furthermore, the 200 day EMA is just below, so overall it is only a matter of time before the buyers get involved and reach towards the 3150 level given enough time. Having said all of that, the bear case of course is that we break down below the 200 day EMA.
S&P 500 Video 29.06.20
If you break down below there, the market is likely to reach towards the 2800 level, which is even more supportive. Whether or not we can get there anytime soon is a completely different scenario but looking at this chart it is obvious that we have a lot of noise that could come into play. Expect a lot of back and forth, as traders begin to worry about multiple issues.
The governor of Texas has closed down the bars again, and that suggests that people are concerned about the virus taking over and shutting down the US economy. Whether or not that happens might be a completely different story, but at this point there are still a lot of nervous when it comes to trading these markets. At this point, this is a market that will probably offer more short-term trading opportunities than anything else.
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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