Advertisement
Advertisement

S&P 500 Price Forecast – S&P 500 noisy and slightly negative to start week

By:
Christopher Lewis
Updated: Jul 3, 2018, 04:34 UTC

The S&P 500 initially fell during trading on Monday, as the fears of a trade war continued to be on the forefront of the minds of traders everywhere. The Americans look very likely to slap more tariffs against the Chinese on Friday, and the Chinese of course are going to retaliate. In this environment, it’s going to be difficult for stocks to rally significantly.

S & P 500 daily chart, July 03, 2018

The S&P 500 fell a bit to start the week on Monday, as the trade war continues to loom large. The rectangle that I have on the chart to find the current trading range, with the 2700 level below being a bit of a support level. I think that the market will probably continue to struggle in general though, so I believe that we will stay within this rectangle over the next several days, at least until we get some type of gauge as to what the Chinese will do in retaliation.

If we were to break down to a fresh, new low, then I think the S&P 500 probably goes down to the 2650 handle, perhaps even 2600 after that. Overall, I think that the 2740 level continues offer significant resistance above, so if we do rally I would be quick to take profits before that level. I think that range bound trading is probably about as good as this market gets over the next couple of days, and you should keep in mind that Independence Day is Wednesday, so of course volume will be very thin in this market. Because of this, I think that you may be better served staying away, but a fresh, new low is obviously a very negative sign and could be taken advantage of. Otherwise, you are looking at range bound, and choppy trading based upon headlines more than anything else.

S&P 500 Video 03.07.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement