S&P 500 Price Forecast – stock markets crash againThe S&P 500 broke down rather significantly during trading on Thursday, crashing down towards the lows that we have seen tested a couple different times. However, there are signs of support underneath.
At this point, I think it’s obvious that the 2600 level is crucial, and at this point I also think that it’s obvious the last couple of days have shown an acceleration of the negativity in the markets. With Friday being the jobs number, then I believe the next 24 hours will be crucial. They could very well dictate what happens next in this market.
S&P 500 Video 07.12.18
The arrest of a major Huawei executive in Canada at the behest of the United States has kicked off a lot of fear when it comes to the idea of potential agreements between the Americans and the Chinese. At this point though, I think we are testing major support, and I think if we are going to get a bounce, it simply needs to happen right now. If we don’t get the bounce on Friday, this market will probably break down rather significantly, perhaps down to the 2500 level.
Expect a lot of volatility, and quite frankly I think that you are probably best served staying out of the market for the next 24 hours. Friday is going to be crucial for the market, and therefore very noisy in my estimation. Ultimately, I believe that you probably need to see whether we get a bounce for the daily close, or if we break down through that massive support. It’s essentially a binary question, which we won’t have the answer to until the close of business for the week. Ultimately, the market remains extraordinarily volatile, and therefore very dangerous. Keep your position size small.