S&P 500 Price Forecast – stock markets continue to grind

The S&P 500 tried to rally a bit during the session on Thursday, but as you can see it’s been a less than spectacular session. We have formed a couple of long wicks on the previous couple of days, and this tells me that the market isn’t quite ready to go to the upside for any length of time. The 50 day EMA is starting to accelerate to the downside, and the 2600 level, although being very strong, has been tested already and broken through at one point. I think at this point, it’s likely that we could very well see another attempt on that level.

S&P 500 Video 14.12.18

The alternate scenario is that we break above the 2700 level, which should set up a move towards the 2775 level again. I do think that the onus is on the buyers now, as the sellers have become much more aggressive in this market, and there is of course a lot of headline risk out there, and I think that isn’t helping the situation either. Quite frankly, it seems like every time something good happens, something bad comes out almost immediately afterwards. Beyond that, we have a lot of concerns about it being the end of the year and who knows whether or not there will be enough order flow to pick the market up, so I think we are probably better off either trading a break down below support, or fading rallies on signs of exhaustion still.