S&P 500 Price Forecast – Stock Markets Continue to Slump

The S&P 500 pulled back a bit during the trading session on Thursday as we continue to see a lot of concern when it comes to the coronavirus. That being the case, the market will very likely go down towards the 3500 level, which is an area that should offer plenty of support based upon action last week. Even if we break down below there, then I am looking towards the 50 day EMA as support as well. After all, it is only a matter of time before somebody somewhere starts talking about bailing Wall Street down again if we get a significant fall.

S&P 500 Video 20.11.20

That being said, that does not necessarily mean that you should jump in right now. I think we will get a signal on a daily timeframe but right now it is likely that we will see better pricing to get involved. After all, the last thing you want to do is chase the market, and it has shown itself to be a little bit extended as of late. A pullback should be thought of as a value play, and I will return to this chart every 24 hours to look for signals. Right now, the markets are simply trying to figure out what to do next and that has a lot to do with the price action that we have seen over the last 10 sessions or so. It is not until we break down below the 200 day EMA, all the way down near the 3200 level, that I would be concerned about the index. With this, it is either a “buy on the dips” type of scenario or simply sit on the sidelines.