S&P 500 Price Forecast – Stock Markets Continue to Defy Gravity

The S&P 500 continues to be off the chain, as the markets continue to see a celebration of a potential opening of the economy despite the fact that the economies are still going to be sluggish to say the least. At this point, I believe that the market will continue to try to grind higher, but there is a massive amount of resistance between here and the 3100 level, so it is not going to be easy. The question now is whether or not the market can continue the narrative of “everything’s getting better”, or will they pay attention to economic figures such as the Pending Home Sales drop of 35% year-over-year during the early part of the session?

S&P 500 Video 29.05.20

We are in a bear market and have seen a massive bounce. That being said, the 3000 level is going to continue to be crucial so if we were to break back down below it certainly would be somewhat of a negative headwind. However, if we can break above the 3100 level then there is almost nothing to keep this market from going to the all-time highs it is difficult to say right now, but clearly the buyers are pressing the issue. If the sellers do not get involved rather soon, we will eventually see that explosive break out and potential “blow off top” before the market starts the price and the reality of 40 million jobs lost, which would certainly have an effect on an economy that is driven by the 70% consumption. If the consumer does not have a job, it is not consuming.

For a look at all of today’s economic events, check out our economic calendar.