S&P 500 Price Forecast – Stock Markets Gap Lower To Start Week

The S&P 500 has gapped to kick off the week to the downside as people worry about the Chinese economy due to the coronavirus, and of course the that could come with the quarantine of several cities in that country. At this point, the market is very likely to try to find buyers in this general vicinity, but you could also make an argument for support all the way down to the 50 day EMA near the 3200 level. Ultimately, the gap will get filled, but you will probably need to wait for some type of this table position on a daily candlestick at the very least in order to start putting money to work. We are still very much in an uptrend, despite the fact that the markets are looking to freak out as much as possible on Monday. This is not a scenario that looks like a market meltdown, just something that needs to be used as an excuse in order to find offers of value underneath.

S&P 500 Video 28.01.20

If we were to break down below the 3200 level, that would be very negative, perhaps opening the door down to the 200 day EMA which is closer to the 3030 level. That being said, we need to wait for the daily close in order to make some type of decision, and therefore I am sitting on the sidelines and waiting for the dust to settle. Remember, you don’t have to be the first trader to pick up value, but if the market rallies, you just need to notice and follow.

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