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S&P 500 Price Forecast – Stock Markets Broke Down a Bit on Friday Again

The S&P 500 slice through the 3000 level during the trading session on Friday, as we continue to see a lot of noise up about global growth and recessionary concerned.
Christopher Lewis
S&P 500

The S&P 500 has broken down a bit during the trading session on Friday as we continue to worry about global growth and the coronavirus effect on it. With concerns about recession out there, it’s very difficult to imagine that the stock markets are going to suddenly turn around. Yes, the Federal Reserve has cut interest rates but the fact that they are more than likely going to going forward it seems as if stock traders are more concerned about the unknowns at this point. That being said, you can also make an argument for some type of consolidation in this general vicinity so at this point the selloff has at least been orderly over the last week or so.

S&P 500 Video 09.03.20

If the market makes a fresh, new low though, that would be extraordinarily bearish, sending this market to go looking towards the 2750 handle or so. To the upside, we need to clear the 3100 level to feel little bit more comfortable about been bullish, and right now that doesn’t look is likely to happen. I believe ultimately this is a market that will continue to see a lot of choppy and possibly destructive trading, as we try to deal with a new normal. At this point, the 200 day EMA has been acting as a bit of the ceiling so pay close attention to that as well. It currently resides at the 3075 handle above. So far, it certainly looks as if the markets are quite ready to thrash about in order to try to find some type of stability.

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