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S&P 500 Price Forecast – Stock Markets Find Support

The S&P 500 bounced a bit after initially falling overnight in the E-mini contract. By doing so, it shows that we may be trying to form a little bit of a base in this general vicinity.
Christopher Lewis

The S&P 500 initially fell during overnight trading in the Globex but turned around a break above the 2400 level to reach all the way to the 2500 level during trading on Tuesday. If the market can break above the 2500 level, and there’s no reason it can’t, we could see this market race back towards the 2600 level. That’s an area where I would expect to see a certain amount of resistance, perhaps extending all the way to the 2700 level. At this point in time, it’s very likely that the market does get some type of significant bounce due to the fact that we had sold off so rapidly.

S&P 500 Video 18.03.20

If we break down below the lows of the trading session on Tuesday, it will probably have the bottom fall out of the market, and then at that point I think the next area of interest will probably be closer to the 2100 level. I don’t necessarily think that the market is quite ready to do that, but it is a possibility that I have to keep in the back of my mind. This has been a brutal selloff, but it also offers a lot of opportunity for those who have the wherewithal to hang on to this type of action.

If we can break out to the upside, I think the real challenge is going to be somewhere near 2700. If we can clear that it’s likely that we go much higher but that is probably a story for some time next week, assuming that everything goes right. Until then, I think short-term back-and-forth between 2420 600 makes the most sense.

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