S&P 500 Price Forecast – stock markets continue to break down

Stock markets continue to struggle overall, as we have sliced through a major support level. Overall, it looks as if the equities can’t get out of their own way, and it’s likely that rallies will only offer selling opportunities yet again.
Christopher Lewis
S & P 500 daily chart, December 26, 2018

The S&P 500 initially tried to rally during trading on Monday, but Christmas Eve wasn’t so jolly for traders. We broke down through the 2400 level in the S&P E-mini contract, signaling that we are going to see even more bloodbath carnage on Wall Street. Now that the 2400 level has been broken through, it’s likely that we could go lower, but I think at this point it’s probably going to be more of a “sell the rallies” type of market. I don’t think that market participants will be willing to jump into this market until well after New Year’s Day.

S&P 500 Video 26.12.18

Granted, given enough time we should see stability come back into the marketplace, but quite frankly is going to take a lot of “boring trading” to give you the signal to get involved. However, accumulation takes time, so at this point I think it’s good to be very difficult to go long unless you are investing, not trading. CFD markets could give you the opportunity if you take a small enough position, but I do believe that eventually the buyers will return. This is a market that has further to go lower though, and it seems like the fear is very probable and very real when it comes to this market. I think this market will continue to be difficult to look at from the upside, so therefore punishing those short-term rallies will continue to be the best way.

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