S&P 500 Price Forecast – Stock Markets Collapsed Again

The bloodbath continues on Wall Street, as the S&P 500 has made a serious attempt at the 2500 level. We probably will get a short-term bounce but that will more than likely be sold into unless of course the US government does something along the lines of fiscal help for the economy. Regardless, we are at the point where we are completely oversold so a bit of a bounce should be an opportunity. The 2700 level above would be massive resistance, extending all the way to the 2800 level.

S&P 500 Video 13.03.20

Overall, this is a market that has no real reason to rally other than the fact that it is oversold. However, the headlines continue to push this market back and forth so therefore it’s going to be difficult to hang on to a position simply because things can get turned around right away. With this in mind, you should keep your position size relatively small as the whipsaw could continue to be a major issue.

With all this being said, clearly buying any type of rally is going to be a fool’s errand, at least not until we get some type of substantial movement from the government and policymakers. Ultimately, I think that we will probably test the 2350 level, which is essentially the 100% Fibonacci retracement level. At this point in time, you could use options to get around some of these issues, as it’s very difficult to imagine a scenario where jumping in with both feet will be feasible. With this type of volatility, protecting your trading capital should without a doubt be the most important thing on your mind.