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

The S&P 500 rallied significantly during the trading session on Wednesday, breaking towards the 2900 level. This is an area that of course is very crucial as it is a large, round, psychologically significant figure, and it is also the scene of a major break down back in fall of 2018. The question now is whether or not we can break above the 2900 level?

S&P 500 Video 04.04.19

I suspect at this point we are probably going to start to see sellers come in and trying to push the market back down, but that doesn’t necessarily mean that we have to have some type of meltdown, just that we had gotten a little too far ahead of itself. Ultimately, this is a market that I think has a major floor at the 2790 level, so we could drop as low as that level before seeing anything overly concerning. That being the case, I look at pullbacks as value but think that another day or two is probably as good as the uptrend goes. If we did break above the 2900 level, it’s definitely a bullish sign and it could go much higher at that point.

I think the one thing you can count on in the short term is a lot of volatility and choppiness, and ultimately this is going to be a scenario where short-term trading is going to dominate the action. If you have made large profits going long at the S&P 500, it’s time to tighten up your stops.

Please let us know what you think in the comments below