S&P 500 Price Forecast March 6, 2018, Technical Analysis

There are trade war worries out there, but it appears that stock market participants are willing to overlook this, or at least put that concern on the back burner as we have seen a bit of the rally. I believe that the 2800 level above will be a target, but there will also be areas of concern between now and that level, at every 20 points. Ultimately, I think that the buying of the S&P 500 is being done by value hunters, suggesting that perhaps we are going to continue to see the uptrend continue. However, if we were to break down below the 2650 level, the market should then go down to the 2600 level, perhaps even lower than that. I believe that the 2500 level underneath is the “floor” in the overall uptrend, so I think that the market participants will continue to look at this as a market that is an uptrend but continues to have moments of concern.

If we were to break down below the 2500 level, the market will breakdown rather significantly at that point, as it was such a strong support level last month. By clearing that level, the market could go much lower, perhaps as low as 2300 next. At that point, I think the sellers would become very aggressive, and I think that the markets will continue to fall apart at that point, perhaps causing a bit of a panic. However, I think that given enough time the buyers will return regardless what happens next. Right now, I favor the upside but with a lot of noise.

S&P 500 Video 06.03.18