S&P 500 Price Forecast – Stock Markets Continue to Get Hammered

The S&P 500 initially tried to rally during the trading session on Tuesday but failed at the bottom of the uptrend line that had formed during the previous session. By doing so, it did up forming a very negative looking candlestick, but at this point the question isn’t so much as to whether or not the stock market is negative, whether it is going to be a longer-term move? I don’t necessarily believe that, but we may have a little further to go to the downside.

S&P 500 Video 26.02.20

If the market were to break down from here, it’s very likely that the 200 day EMA would be an area where people would be looking to buy, as it is not only a long-term technical indicator, but it also is at the 3100 level, an area that should offer quite a bit of support. If we were to turn around a break above the top of the candlestick for the trading session and thereby skip back over the uptrend line, that would be a very bullish sign in would have you been forced to buy this market.

All things being equal though, this is a market that is cracking itself due to the coronavirus, but it remains to be seen whether or not it is a small correction or if it turns into something a little bit more substantial. It is probably best to leave this market alone for at least 24 hours. I will be looking at the candlestick side day by day basis before putting any money to work in one direction or the other.