S&P 500 Price Forecast – stock markets crater

The S&P 500 has initially gapped lower on Monday, but then turned around to fill that gap. We broke down below there and sliced through the 2600 level, an area that has been massive support. I think there is a huge amount of support down to the 2500 level, which is a large come around, psychologically significant figure. There is a zone of support overall, so it would not surprise me at all to see some type of bounce. However, it looks as if we are going to continue to see negative pressure in this market, as the 50 day EMA has certainly turned down.

S&P 500 Video 11.12.18

Ultimately, the 2500 level underneath is an area that if it gets broken through, that could be very negative. Ultimately, if we get rallies, I think it will give us plenty of opportunities at round numbers for markets to turn around and short this market. In general, we have just made a “lower low”, and that of course is a first sign of negativity. Obviously, the 2820 level above has been extreme resistance, and now we have shown just how difficult being bullish in this market has been. I think the next move is almost certainly to the downside at this point, and I think that the overall markets will continue to crumble into the New Year. Going forward, I’m looking for signs of exhaustion to fade on rallies that gives us an opportunity to reload in our positions. As far as buying is concerned, I just don’t see the scenario now.