S&P 500 Price Forecast – Stock markets continue to grind higher

The S&P 500 did rally a bit during the trading session on Tuesday to reach the 2850 handle. That’s an area that has a certain amount of psychological importance to it, but from a bigger perspective, we have much more interest at the 2900 level. Overall, the market looks likely to continue to see a certain amount of bullish pressure, but occasionally we may get a small value opportunity.

S&P 500 Video 20.03.19

Looking at the chart, I recognize that the 2800 level underneath is relatively important, and of course will have a certain amount of psychological importance attached to it as well. I think that a lot of traders will look at this as an opportunity to pick up stock market futures at lower prices when we do. However, if we manage to break above the 2900 level then we should start looking towards the 3000 handle.

The alternate scenario of course is that we break down below the 2800 level, then we could reach down to the red EMA on the chart, which is the 50 day EMA. This has recently seen a nice-looking hammer formatted, which then was the beginning of the bullish flag that we find ourselves in. Ultimately, this is a market that should continue to find plenty of buyers on dips as I stated previously, as we are clearly in and uptrend and the Federal Reserve is more than likely going to acquiesce to Wall Street’s demands of loose monetary policy.

Please let us know what you think in the comments below