S&P 500 Price Forecast – S&P 500 pulls back ahead of jobs number

The S&P 500 has broken down during the trading session on Thursday, but it looks as if we are trying to find some type of support near the 2910 handle, which I think is a significant range of support that extends down to the 2900 level. Quite frankly, this market has been very range bound over the last couple of weeks, but with an upward proclivity. I believe it’s only a matter time before the S&P 500 rallies again though, and I believe that the 2900 level underneath is essentially the “floor” in the market. If we were to break down below that level, the market could unwind rather drastically. I think that could open the door to much lower pricing. However, we have seen resiliency by stock traders, and of course corporate earnings are pretty good longer term.

The one thing that does stand in the way is a strengthening US dollar, so perhaps if the EUR/USD pair can rally, that could help the S&P 500 go higher. The 2950 level above was massive resistance, and I think it will be the target going forward. I expect a lot of erratic trading, but over the longer-term I think that the buyers will continue to push higher. Longer-term, I believe this is a market that will focus on fundamentals and that of course means strengthening company earnings. If we do that, I eventually we will break above the 2950 handle, and then go looking towards the 3000 level above which of course is crucial as far as structure is concerned in this market.

S&P 500 Video 05.10.18