S&P 500 Price Forecast – S&P 500 sideways in early trading on Tuesday

The S&P 500 continues to show resiliency as it has gone sideways during the session on Tuesday. This is after a significant negative move, so it makes sense that perhaps market participants are taking a bit of a breather, perhaps value hunters coming back in to try and push the market to the upside, or it’s just a simple technical bounce from the psychologically important 2700 level underneath it was tested on Monday.

Stocks are deftly difficult to own in America right now with the talks of trade tariffs and an expanding trade war with the Chinese, and possibly even the Europeans heating out. At this point, traders seem to be in a mood to sell first and ask questions later. I think it is because of this that eventually we will find a strong value proposition in these markets.

In the short term, the market is very likely to try to reach the 2750 handle again, as the longer-term charts would dictate that a bounce makes sense. That doesn’t mean that it’s good to be an easy move to make, and it certainly doesn’t mean that it will be extraordinarily volatile. Because of this, it’s probably best to keep a small position on and only add to the market once it moves in your favor. However, if we were to break down below the 2700 level, you must be willing to jump out of the marketplace or perhaps even start selling.

S&P 500 Video 27.06.18