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S&P 500 Price Forecast – Stock market falls hard after Jobs number but Recovers

The stock market broke down significantly during the trading session on Friday after the jobs number came out much stronger than anticipated. Overall, this is a market that is bullish, and at this point we are ready starting to see a recovery.
Christopher Lewis
S&P 500 daily chart, July 08, 2019

The S&P 500 broke down significantly during the trading session on Friday, but then turned around to show signs of life as Jerome Powell came out and suggested that the Federal Reserve was willing to step in and support the market see the way. The market obviously is looking at the liquidity measures by the Federal Reserve is paramount, so it looks as if we will probably go looking towards the 3000 level again.

S&P 500 Video 08.07.19

If we can break above the 3000 handle, then the market will continue the breakout and go much higher. Ultimately, this is a bullish market and at this point it makes no sense to try to short this market. The Federal Reserve is going to let the market the matter what happens, and Wall Street has already made up its mind. Look at the sudden pullbacks as a potential buying opportunity representing value.

I believe that the 2900 level is the floor, but we are nowhere near it so quite frankly this is a “by on the dips” scenario. The candle stick being broken to the downside for the Friday session could present a “hanging man”, but really I think it’s only a matter of time before the buyers come back in the even if that kicks off. The longer-term target could be as high as 3100, maybe even 3200 but obviously it’s going to take a lot of work as the market rolls over at the slightest hint of trouble or higher interest rates.

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