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

The S&P 500 has gapped lower to open up the session on Thursday, but as you can see, we have in fact pulled back from there to continue dropping. It looks as if the stock market is starting to take into account that perhaps it has rallied far too much, and therefore a pullback is necessary.

S&P 500 Video 17.04.20

From the technical analysis standpoint, the 50 day EMA of course is resistive but then again so is the 50% Fibonacci retracement level. At this point, the market is most clearly going to struggle in general, and therefore I prefer selling the rallies as they happen. I believe that the market volatility will continue to major issue, so having said that I like the idea of fading rallies every time they occur, unless of course we break the highs of the Tuesday and Wednesday highs, which would be a bullish sign and could send this market reaching towards the gap above given enough time.

To the downside I see the 2640 level as a likely target, although I think there is enough technical support underneath that the market will probably not necessarily shoot straight down there overnight. The reality is that the economy is going to continue to struggle so it makes no sense for the stock market to rally in this type of environment. Ultimately, I like the idea of trading in and out of this pair market to the downside and have no interest whatsoever in buying unless we break that resistant level that I mentioned previously. If we do break out, the 200 day EMA is going to offer significant resistance as well.