S&P 500 Price Forecast – Stock Markets Gap Higher on Friday

The S&P 500 gapped higher to kick off the trading session on Friday, and at this point it’s likely that the market will probably see a lot of selling pressure. Ultimately, this is a market that is going to continue to struggle going much higher from here, as we have tested a major resistance barrier. Beyond that, the 200 day EMA also comes into play at that 61.8% Fibonacci retracement level above, and therefore I think there are a lot of sellers in that area. Furthermore, there is also a gap that could come into play as well. Quite frankly, the rate of change when it comes to the S&P 500 to the upside is slowing down and that is crucial.

S&P 500 Video 20.04.20

At this point, the market looks to be stretched and therefore I’m going to take advantage of shorting opportunities if we can break down below the 2800 level. If we can get there and below there then I think it opens up the door to the 2640 handle, followed by the 2500 level. Otherwise, if we do break out to the upside then I’m going to start shorting near the 2980 handle. I have no interest in buying this market, it is far too overbought in the short term, especially considering that a lot of the concerns are still out there and quite frankly there were a lot of soft economic numbers coming out long before the pandemic started. Studying the history of bear markets, these rallies happen all the time, and typically are sold into.