S&P 500 Price Forecast – S&P 500 continues to press onward

The S&P 500 has gone back and forth during the trading session on Monday, losing most of the gains rather quickly. The 2860 level is the beginning of significant resistance, reaching towards the 2870 handle. I believe that the 2850 level underneath is going to offer a bit of support, but quite frankly it looks like we are truly struggling to break out. The nice thing about the setup is that if and when we make a fresh, new high, it will probably act like a beach ball being held under water, meaning that it will pop rather quickly.

This is a very interesting level we find ourselves in, and as a result I have been cautious about trading the ES futures contract, which is how we express in the United States. The CFD markets follow as well, trying to reach but then pulling back. Overall, it looks to me as the market is finding these lofty areas a bit difficult. One of two things is about to happen: this chart is representing a nice bottoming pattern, and perhaps even some type of complex head and shoulders pattern, or quite possibly we are seeing the market top out again. I think the next couple of days are going to be extraordinarily difficult and dangerous and would recommend stepping away until we get some clarity, something that will probably happen quite suddenly and violently. This just looks ready to pop, and the last thing you want to do is be on the wrong side of the trade.

S&P 500 Video 21.08.18