S&P 500 Price Forecast – Stock Markets Continue To Chop

The S&P 500 has broken down a bit during the trading session on Thursday, heading into the jobs figure on Friday. Ultimately, it looks as if the 3100 level is offering a significant amount of resistance, and it should make quite a bit of sense that there is a lot of back and forth right around the 200 day EMA. Ultimately, if we can break above the 3150 handle, then I think you may have a shot at this market going much higher as we have seen a lot of selling in that area over the last three sessions. That being said though, if the market does break down from here, and clears below the 3000 handle on a daily close, I think that might be the next sign that we are going to break down rather drastically in the S&P 500.

S&P 500 Video 06.03.20

If that happens, it’s very likely that we will see more central bank action. Quite frankly, central banks around the world suddenly look very nervous about this whole coronavirus issues slowing down the economy, and therefore I think we have a lot more volatility ahead of us, not less. The jobs number being stronger could cause some issues, because then people may begin to think that the Federal Reserve may not listen to the market this time and cut interest rates. Let’s be honest here though: the Fed does what the market wants and they will cut those rates sooner or later.