S&P 500 Price Forecast – Slow grind higher on Friday

The S&P 500 did grind a little bit higher during the trading session, and it does look like we are trying to go higher. However, this is a marketplace that did very little on Friday as we await the G 20 and what happens there. Ultimately, this is a market that I think will try to glean what comes next from headlines and that of course is very difficult. The Federal Reserve is on the sidelines and looking to cut interest rates so that does help stocks longer-term, but in the short term we will have some type of reaction to whether the statement offers any hope.

S&P 500 Video 01.07.19

I believe that the 2900 level underneath is the beginning of 20 points worth of support, so we could drop all the way down there and still find value. To the upside, the most obvious problem is the recent highs, and of course the 3000 handle. Because of this, I think that the market is probably going to be very choppy and sideways more than anything else, but whatever gap we get at the open on Monday should dictate the next 10 points, possibly 20 points. All of that being said, if the Americans and the Chinese do suddenly come together with some type of trade agreement, that will almost certainly send this market towards 3000 and will above it. If rhetoric gets worse, we could break down below the 2880 handle, which opens up the door to the 2850 level followed by the 2800 level.

Please let us know what you think in the comments below