S&P 500 Price Forecast – S&P 500 looking to bounce

The S&P 500 E-mini contract drop down to the 2750 level after initially dipping during Globex trading on Monday. The 2750 level has been supported in the past, so it makes sense that we got a little bit of a bounce from here. Chinese equities recovering certainly puts a little bit more of a “risk on” attitude into the market, but keep in mind that this market is trying to recover from a significant pickup and volatility. This has a lot of retail traders on the skittish sign, and institutional traders aren’t doing much better. However, it looks as if we are going to have a bit of a recovery, so a move towards the 2800 level is certainly possible. If that’s the case, then I think it fresh money could come back into the marketplace but it won’t take much to scare traders away. Because of this, it is most certainly a very short term oriented market right now.

I believe that in the current environment it’s probably best to trade small, and look towards large, round, psychologically significant levels for your roadmap. In this case, the 2750 level is an obvious choice. The 2800 level is as well, and if we broke above there, and I suggest even a little bit higher than that, then it could give a bit of a “all clear signal” to start adding to positions and build up size. Until then, I think this market is going to try to recover, but it is going to do so tentatively.

S&P 500 Video 23.10.18