S&P 500 Price Forecast – Stock Markets Continue to Find Support Underneath

The S&P 500 drifted a bit lower during the trading session on Monday, reaching down to the 50 day EMA, an area that of course will attract a lot of attention at the 2804 level. At this point, the market is still looking somewhat bullish but at the end of the day there are a lot of negative things out there that should continue to be a major issue. The closing down of the economy is going to continue to be a major headwind for this market, and it’s only a matter of time before the market comes to grips with the fact that the economy is at a standstill. Granted, the stock market looks forward, but the question now is whether or not the economy recovers rather rapidly or whether or not it is a longer-term recovery that is necessary. More than likely, the latter of the two will be the more likely of scenarios.

S&P 500 Video 21.04.20

Above, the 200 day EMA is sitting at the 61.8% Fibonacci retracement level at near the 2950 level. Ultimately, I think if we do rally to that area, there is also a gap that will come into play and more than likely send this market lower. Looking at the candlestick from the Friday session, as we have broken below it, it’s very likely that this could form a bit of a “hanging man”, which of course is a negative sign so if we do close below the 50 day EMA, this could continue to see more selling pressure. At this point, if we break down I’m a seller, but if we rally towards the 200 day EMA, I’m also a seller.