S&P 500 Price Forecast – Stock Markets Gapped Lower to Kick Off the Week

The S&P 500 gapped lower to kick off the trading week, but then bounced to fill that gap. At this point in time, it looks like the 2800 level is going to continue to attract a lot of attention, and therefore it is likely that we will see an attempt to recover a bit during the next 24 hours. That being said, this is a market that certainly has a lot to worry about, not the least of which will be the US economy. This is a jobs number week, so that comes into play as well.

S&P 500 Video 05.05.20

To the downside it looks as if the 2750 level is going to be major support, so if we can break down below there it is likely that the market will continue to go even lower. Short-term pullback should be buying opportunities and as a result you should be looking at the short-term charts for that type of move, but longer-term it certainly looks as if there are a lot of reasons why this market should go down. After all, we recently pulled back from the 61.8% Fibonacci retracement level and of course the 200 day EMA. With that being said, it is a bit of a “two speed market”, and therefore it is likely that we will see different traders expressing their opinion on different time frames. I do believe that we are about to see another leg lower but obviously the one thing you can probably count on is choppy volatility.