S&P 500 Price Forecast – Stock markets continue to test highs

The S&P 500 did very little during the Friday session as options traders stepped into the market to hedge various huge positions. Looking at this chart, the 3030 level offer significant resistance, just as the 2980 level underneath offer significant support. I believe that we are going to continue to bounce around in this area but most certainly we have more of an upward bias as of late. Looking at the support level underneath, and more importantly the consolidation area underneath the 2950 handle, there is a suggested move to the 3100 level above.

That’s not to say that this is going to be easy, and I would fully anticipate that we are going to chop around overall, as the markets are very noisy and loud. The “buying on the dips” type of mentality probably continues to get rewarded, as is typically the case with stock markets longer-term. That being said, if we do break down from here the 2980 level is your first support level, followed by the 50 day EMA at the 2950 handle. Beyond that, the 2950 level is the top of the previous consolidation area that measures for a move to 3100. In other words, even though the markets are a bit jittery and difficult to deal with, the reality is that there are a lot of buyers underneath just waiting to push the market to the upside. I believe at this point, you could also make an argument for a complex “W pattern” forming and perhaps getting ready to kick off.

Please let us know what you think in the comments below