S&P 500 Price Forecast – Stock Markets Consolidate At High Levels

The S&P 500 has gapped lower to kick off the week but found enough support just above the 3200 level again to show signs of life. By doing so, it looks as if we are ready to continue going back and forth, showing a bit of indecision. However, when you look at the longer-term charts it is obvious that we are in a bullish market, and therefore looking for value is still the best way to go, despite the tensions between the Americans and the Iranians.

S&P 500 Video 07.01.20

Market participants will continue to weigh the geopolitical situation, as it is continuous to say the least. Ultimately, this is a market that is bullish though, so it will find any reason whatsoever to rally that it can. The Federal Reserve continues to offer loose monetary policy and a lot of traders out there have become extraordinarily complacent with that fact. Having said that, that’s been the way the markets have been acting for a decade, so there’s no reason to think that it’s can it change suddenly. Below current trading, I think the 3150 level will be crucial because it was the previous resistance barrier but should now be supportive based upon “market memory.” Furthermore, the 50 day EMA is starting to cross to that level and therefore it’s another reason to think that the market will find buyers in that area. Look for value but take advantage of it as it continues to offer quite a bit of opportunity in a market that is obviously extraordinarily bullish. Selling isn’t an option.