S&P 500 Price Forecast – stock markets crash again

The 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.
Christopher Lewis
S & P 500 daily chart, December 07, 2018

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.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.