S&P 500 Price Forecast – Stock markets continue to press major resistance

The S&P 500 rallied initially during the trading session on Thursday in the Globex, but as you can see we have pulled back a bit from the psychologically important 2800 level. Nonetheless, this is a market that is showing the resiliency during US trading, and it’s very likely that we are going to have another serious go at this major barrier. If it gives way, this market is going to shoot straight up in the air as it is such a significant barrier.

S&P 500 Video 22.02.19

Ultimately, pullbacks should continue to be buying opportunities all the way down to at least the 2700 level. That means there may be some pain and you may have to be very patient to take advantage of these opportunities, but it’s very likely that we will get these  opportunity several times. I think that a break out is coming, but it is going to take some type of catalyst. What’s that catalyst, probably the US/China trade talks. If the news is good or possibly even some type of delay, then I think that the market will continue to show a proclivity to go higher. If negativity comes out of that meeting, we could see a lot of ugliness on this chart and go racing towards 2700 level rather quickly.

If we were to break down below the 2700 level, the market probably goes down to the 2650 level, followed by the 2600 level very quickly. To the upside, a break out probably sends this market to the 2900 level, possibly even 3000 over the longer-term. With the Federal Reserve looking very soft, I think the market feels as if it has a “Powell put” underneath it.

Please let us know what you think in the comments below