S&P 500 Price Forecast – S&P 500 continues to be noisy and negative

The S&P 500 is starting to roll over again, and it looks as if we will probably continue to pull back which I think is necessary at this point. James Bullard decided to chime in on the situation and suggest that perhaps the Federal Reserve is going to cause a recession by raising rates, but anybody who’s ever follow this knows that’s the case. It’s happened every time they raised rates with the exception of one time since World War II. However, this had the algorithmic traders going nuts, as the robots sold everything they could. We are starting to see a little bit of support, and a lot of the panic selling from European traders is starting to abate. I suspect that by the time the Americans get a hold of this, they will probably try to pick it back up, which has been the pattern. European cell, Americans buy.

At this point, I think it’s probably best to leave the S&P 500 alone until we get some type of definitive daily candle, and with the various headlines out there involving the Brexit and everything else US/China related, it’s probably a market that is going to be very destructive at times. Leverage positions are to be avoided at all cost, so therefore if you did take the trade I would take a small CFD trade at best. Futures markets are to be left alone, it’s going to be way too easy to lose money in this type of environment. Longer-term, I remain positive but obviously we have some things to work through.

S&P 500 Video 06.09.18