S&P 500 Price Forecast – Stock Markets Continue FOMO

The S&P 500 has initially pulled back during the trading session on Thursday, but then bounced again as we continue to see plenty of buyers willing to jump in and catch on to the FOMO. At this point, the market breaking above the highs of the last couple of days could open up a move towards the 3200 level. A break down from here is probably going to be extremely healthy, but I do not see that happening easily, at least not without some type of serious negativity.

S&P 500 Video 05.06.20

To the downside, the 3000 level should offer a bit of psychological and structural support, and beyond that we have the 200 day EMA. It is obvious that this market simply refused to give up, so I think it is only a matter of time before buyers come in and reach towards this market based upon value if we get that opportunity. Looking at this chart, it is obvious that there has been plenty of momentum, but when we see this type of massive buying come into the market, it is difficult to see an easy short.

Do not get me wrong though, sooner or later these types of bubbles pop, especially considering the fundamentals do not line up right now. However, price is price, and fighting this trend has been extraordinarily painful. From everything I see, the S&P 500 could very well try to break out to the upside. Furthermore, it could probably try to go to the all-time highs. Keep in mind that the selloffs in situation like this can be rather brutal and of course the fundamentals do not match up with what we are seeing.

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