S&P 500 Price Forecast – stock markets break down on Tuesday

The S&P 500 has broken down significantly during the trading session on Tuesday, slamming into the 2700 level. That’s an area that of course has been important more than once, but we have broken below the lows of the vicious candle from last week. By piercing that level, I suspect that we will continue to see downward momentum. If we can sustain a move below 2700, I think we could be going as low as 2550 at that point, wiping out the entirety of the move. Overall though, I think what we are looking at is a lot of scared trading.

Rallies at this point will struggle at the 2750 handle, extending to the 2800 level. If we were to break above the 2800 level, that of course would be something rather extraordinary, but I don’t think that is in the cards anytime soon. I anticipate that we will continue to see a lot of skittish behavior and short-term trading will probably favor selling exhaustive candles. I believe that the S&P 500 has shown just how negative it is during the day, and I think it will continue to be based upon the massive candle stick that it formed. Looking at this chart, it’s obvious that there is a lot of fear out there, and I don’t think that’s going to change anytime soon. With that in mind, I am very bearish of the stock market now that we have broken through so much in the way of support.

S&P 500 Video 24.10.18