[DAILY NOTION] FXEMPIRE - S&P 500 Forecast - Oct 22, 2020

Chart: FXEMPIRE

The S&P 500 initially pulled back during the trading session on Wednesday, but then turned around to rally towards the 3450 handle. This is a market that continues to be paid attention to stimulus, and you can make an argument for the possibility of a bullish flag at this point.

The 3400 level underneath is massive support based on observation as there was a massive resistance previously. The 50-day exponential moving average (EMA) sits underneath and is rising overall, so it should offer support of action. At this point in time it is likely that the market will attract quite a bit of attention. After that, there is an uptrend line that should keep this market going higher as well.

What's Next?

Commenting on the index's outlook, Christopher Lewis, FXEMPIRE’s analyst said:

Looking at this point in time, the market continues to see a lot of volatility, because quite frankly you cannot move on the earnings, not that we have over the last 12 years for the most part, and you cannot move on the U.S. dollar, unless of course you believe that stimulus is going to be huge. At this point, with the election looming large, there are a multitude of potential bad outcomes in both directions. Buying dips makes the most sense but I would not do so with big amounts of money.

Source: https://www.fxempire.com/forec...