S&P 500 Price Forecast – S&P 500 continues to rallyThe S&P 500 rallied quite nicely during the trading session on Tuesday but did not do so without drama. The market broke down below the 2900 level after it was announced that the Chinese were going to the WTO to complain about the Americans, and of course that more reactionary tariffs would be part of the game. Beyond that, the Americans have already stated that they are going to add more tariffs.
The S&P 500 has rallied significantly during the trading session on Tuesday, as we continue to see a lot of noise crossing the wires. The Chinese and the Americans continue to fight each other through tariffs, and this of course has a lot of people concerned. I think at this point, it’s likely that we are going to continue to see market participants be scared out of positions, only to see the market turned around. That’s exactly what we saw during the morning on Tuesday, as we dipped well below the 2900 level, but did not hang around underneath that level for more than a few moments. That of course is a very bullish sign, as it appears equity traders are more than willing to ignore tariffs in the short term.
Currently, I believe that the market will eventually try to go to the 3000 level, but we will continue to have these massive shake outs due to headlines crossing the wire between both the Americans and Chinese. The markets already know that the Americans are getting ready to react to the Chinese and add more tariffs, and there’s a question as to whether the Chinese or even going to come talk about trade after this. Although it looks bullish right now, and I do think that longer-term the buyers will continue to jump into this market, do not be surprised if we get the massive selloff occasionally. Look at those as buying opportunities on stability, using short-term charts.