S&P 500 Price Forecast – S&P 500 rallies again on TuesdayThe S&P 500 has rallied nicely during the trading session on Tuesday, breaking above the 2800 level. The market looks likely to continue to test the area above, and if we can clear the 2805 level, I think at that point the market will continue to go towards 2820, and then eventually break out to the upside.
The S&P 500 has rallied significantly as the Americans came on board, showing signs of life again. However, I think there’s a lot of noise above that is going to be difficult to overcome. I think that the testimony of Jerome Powell has discounted the risk that a trade war could throw the global recovery off-track. He essentially has suggested that things will work themselves out. Because of this, a bit of a “risk on” attitude has set itself upon Wall Street again.
I think that the 2790 level underneath is support, and at that point I think there is plenty of demand. I believe that the market should continue to be very noisy and choppy, but if we do break down below the 2790 level, then I think the market goes looking towards the 2770 handle. I do believe that we could eventually break out to the upside, but it is going to be difficult to do so and it may take several attempts. Remember though, the more attempts we make it these levels, the more likely they are to break down and give way.
Expect volatility, but that’s nothing new as I believe that the market will continue to focus on headlines around the world, but the one thing that should be noticed is that the US economy is outperforming the other ones around the world, so that should put a bit of a natural lift in this market.