S&P 500 Price Forecast – Stock Markets Continue to Try to Break Out

The S&P 500 has rallied again during the trading session on Tuesday, reaching towards the 3420 level. If we can break above there and stay above there at the end of the trading session on Tuesday, it is likely that the market is ready to go looking towards the highs again. At this point, I think that short-term pullbacks are going to be thought of as buying opportunities and even if we do break down from here I think it is easy to see that the S&P 500 is trying to break out more than anything else. I believe that there is also support done at the 50 day EMA which is currently sitting just above the 3300 level.

S&P 500 Video 07.10.20

Breaking down below the candlestick from the last couple of sessions could send this market down towards the 3200 level, and I think there is plenty of buyers down there to keep this market afloat. The 200 day EMA is sitting just underneath that level, and it is likely that would be defended vigorously by the bullish traders out there. You can also make an argument that this is a “V-shaped bottom”, or at least that we are trying to form here.

That is a very bullish sign, so therefore if we do break out to the upside a lot of people will be paying quite a bit of attention to this market. I have no interest in shorting this market anytime soon, simply because there are far too many areas where the buyers can get involved and of course the Federal Reserve will do what it can to save the market given enough time.

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