S&P 500 Price Forecast – S&P 500 rallies through resistance on Friday

The S&P 500 rallied during the trading session on Friday as we continue to see a “risk on” move in general. Now that we are through the 50 day EMA and closing will above it, it looks as if we may continue to go higher. If that does in fact end up being the case, it’s very likely that we will see traders come in and push this market to the upside. The 2700 level would be the next target, but my experience has been that if you can break through the 61.8% Fibonacci retracement level, which we are presently doing, it’s very likely that you will retrace the entirety of the move. That means that we will not only reach towards 2700, but we may reach towards 2800 at that point. This makes sense of course, because everybody, including myself, thought that the market was overly bearish and it was almost impossible to buy. This is what is known as the “pain trade”, which is essentially where most of the money is made.

S&P 500 Video 21.01.19

Now that it has become obvious to everyone out there that the rally is for real, money will come in and try to chase this position. Look at dips as buying opportunities as long as we can stay above the 2600 level, which of course is previous support, then resistance, and now should be support yet again. With the Federal Reserve looking to slow down rate hikes, this should continue to inject positivity into the markets.