S&P 500 Price Forecast – Stock Markets Continue to Look Very SoftThe S&P 500 tried to rally on Friday but as you can see gave back the gains. It looks as if we are trying to support this market at the same area again.
The S&P 500 initially tried to rally during the trading session on Friday, reaching to the upside before rolling over. At this point, the market is looking very likely to break down below the 50 day EMA, and at this point we are likely to test the 3300 level. If we can break down below there, then the market is likely to go down towards the 3200 level. That is a large, round, psychologically significant figure that had previously been resistance, so it does make sense that we would see quite a bit of support in that area. Furthermore, the 200 day EMA is starting to race towards that area so again, it makes sense that we would see interest in that region.
S&P 500 Video 21.09.20
Ultimately, if we were to bounce from here and break above the 3420 level, that would be obviously a very bullish sign, but I do not see that happening in the short term. With this, I think that the next couple of sessions will probably continue to see selling pressure on rallies, because quite frankly there is a lot of concern out there about stimulus, the US dollar strength in, and of course the election coming up. Quite frankly, the market has been overvalued for some time, and now it looks like we are ready to continue going lower given enough time. With that being the case, I like the idea of fading rallies in the short term, but somewhere near the 3200 level I would expect this market turn right back around.
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