S&P 500 Price Forecast – noisy Friday session

The S&P 500 has been very noisy and has made a “lower high” of sorts during the trading session on Friday. I think that the market looks as if it is ready to roll over a bit, which makes sense considering that the US has levied major tariffs on the Chinese, and it’s likely that the Chinese will retaliate, making this a market that will be very risk-averse, at least in the short term. As we go into the weekend, it makes sense that people would be jumping out of the market as well, as it could be a major weekend as well.

The S&P 500 should have plenty of support below though, especially near the 2750 handle. I think that there is even more support at the 2725 level and the 2500 level. Pullbacks should continue to be buying opportunities over the longer-term though, but we need to see some stability and of course the headlines calm down for people to be comfortable buying. The alternate scenario is a shot to the upside, and if we get it I think that the 2800 level will continue to be a problem. If we can break above 2800, the market should be able to go much higher and that would be assigned that we are in the next leg up. Expect a lot of noise, but overall I think that the buyers will eventually return.

S&P 500 Video 18.06.18