S&P 500 Price Forecast – Stock markets at major resistance

The S&P 500 initially pulled back during the trading session on Tuesday but did bounce a bit to reach back towards the 2800 level. That’s an area that should offer significant resistance, so keep that in mind. At this point, the question is whether or not we can break out to a fresh, new high, which could send this market towards the 2900 level. Otherwise, if we break down below the bottom of the Friday session, it’s likely that we will continue to drop towards the 2750 handle, and then possibly the 2700 level.

S&P 500 Video 27.02.19

It really comes down to whether or not the market feels that the Federal Reserve can continue to inflate pricing with cheap money. That being said, the return on these quantitative easing moves continues to be less and less, so it’ll be interesting to see whether or not this can shake itself out. The next 48 hours are going to be crucial, so this point I would be very cautious and wait to see whether we break to a fresh, new high and start buying, or perhaps start selling if we break down below the Friday session. That being said, even if we do break down I think the 200 day EMA, currently sitting just above the 2700 level, is probably a major support level just waiting to happen. Expect choppiness and volatility, because quite frankly I think will be moving based upon words coming out of Jerome Powell’s mouth. That being said, those who are particularly risk averse may choose to stay out.

Please let us know what you think in the comments below