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S&P 500 Price Forecast – Stock Markets Continue to Rally Above 3100

By:
Christopher Lewis
Published: Jun 3, 2020, 16:52 UTC

Completely ignoring reality, the S&P 500 has now broken above the 3100 level. This was the last barrier before we started to see an extension to all-time highs.

S&P 500 Price Forecast – Stock Markets Continue to Rally Above 3100

Completely ignoring reality, the S&P 500 has now broken above the 3100 level. This was the last reasonable barrier before we started to see an extension to the all-time highs. At this point, why would not it happen? Streets in America are on fire, 40 million people are unemployed, the US/China trade tensions continue, and there is that whole Covid 19 thing.

S&P 500 Video 04.06.20

If you got a taste of sarcasm out of the intro, that is what being an analyst is like sometimes. At this point, the S&P 500 has no business being nowhere near where it is, but at the end of the day price is what matters. You cannot make sense of Wall Street celebrating the pain, but that is exactly what they have been doing. The problem I run into here is that above 3100 it is highly likely that we simply continue to go much higher in trying to recapture the highs. However, fundamentals do not matter anymore, until they do. Once they do, things are going to be horrific and that is what concerns me.

The only way you can handle trading this market right now is to simply buy every dip, until we break down below the 200 day EMA. I recognize that is very rudimentary technical analysis, and quite frankly I am not a huge fan of the 200 day EMA by itself. However, you have to have some type of measuring stick to decide whether or not the market is starting to break apart. I suspect at this time the 200 day EMA is probably just as good as anything else. Regardless, I do think that the market needs to pullback in order to build up a little bit of support, but fundamentals be damned, it looks like we are going higher.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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