S&P 500 Price Forecast – Stock markets banging against major highs

S&P 500 went back and forth during the trading session on Monday as traders came back to work from the weekend. The 2900 level above is massive resistance, and it extends all the way to the 2940 handle. This is a major inflection point, and although I do believe that the buyers will continue to come back to pick up dips, the reality is that is going to take something rather special to break out above that 2940 handle. Once we do, it does offer a very likely move towards the psychologically and structurally important 3000 handle.

S&P 500 Video 09.04.19

In the meantime, I believe that we are looking at a potential pullback and I think a pullback will probably be bought as value. The 2850 level would be especially interesting, but I think there are other minor areas between here and there. I think that’s probably the best plan here: looking for short-term pullbacks at that bounce so we can take advantage of them. However, if we were to break above the 2950 level without pulling back then you simply can’t argue with that type of momentum. All things being equal though we are getting a bit overextended so therefore a pullback probably makes quite a bit of sense. There are a lot of traders out there who have not participated in this rally, and they will be looking for the opportunity to do so on a pullback. That being said, if we manage to break down below the 2790 handle, that could be rather ugly.

Please let us know what you think in the comments below