S&P 500 Price Forecast – stock markets continue to be volatile

The S&P 500 has been very volatile during the Friday session again, as we continue to see a lot of slamming around. It appears that the market is trying to find some type of support at the 2750 level, but quite frankly I think that as we head into the weekend it would not be surprising at all to see sellers jumping into the market. Overall, I believe that it is a situation where the seller still have their hands around the throat of the market, and the 2800 level above should be resistance. That being the case, I remain negative in the short term, but I think that it is only a matter time before buyers show back up.

I think that the volatility is here to stay, at least for the next several sessions, but going into the weekend a lot of people won’t want to have exposure out there as headlines could come out involving the Sino-American relations, tensions in the Middle East, interest rates going higher, liquidity issues, you name it. I think that the S&P 500 is in the middle of a significant correction, but it’s probably one that’s needed. We haven’t had a decent pull back to speak of in a while, and although it’s been very brutal over the last couple of days, when you look at the longer-term charts it’s very natural looking. As the Federal Reserve looks to tighten its monetary policy, the stock market will have to stand on its own, something it’s not used to doing over the last decade.

S&P 500 Video 15.10.18