S&P 500 Price Forecast – Stock Markets Get Crushed on MondayThe stock markets got crushed on Monday as the US dollar sword. At this point, the S&P 500 looks very vulnerable and could even drop as low as the 200 day EMA.
The S&P 500 broke down significantly during the trading session on Monday, as we continue to see a lot of US dollar strength around the world and it looks as if the S&P 500 is trying to reach down towards the 3200 level. With that being the case, the market is likely to see an attempt to find support this area, and then perhaps even the 200 day EMA underneath there. With this being the case, if we get some type of bounce it could be a nice turn around, but I would not hold my breath for this. We may have a couple of days’ worth of volatility to shake everything out in the meantime.
S&P 500 Video 22.09.20
If we were to break down below the 200 day EMA, then it could open up the door to the 3000 level which of course will attract a lot of attention. After all, it is a large, round, psychologically significant figure that will grab a lot of headlines. Breaking down below there would be an extraordinarily negative turn of events and could open up the trapdoor to much lower levels. As far as buying is concerned, we would need to see some type of supportive candlestick in order to turn things around, and even then, I would be very cautious about getting to long of this market in one shot. We need stability, and the best trade at this point is to simply stand on the sidelines because quite frankly shorting an index that is as highly manipulated as the S&P 500 is a very dangerous and difficult thing to do.
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