S&P 500 Price Forecast – Stock markets get hammered

The stock markets get hammered during the trading session on Thursday, showing signs of extreme weakness as we slammed into the major uptrend line I have marked on the chart.
Christopher Lewis
S&P 500 daily chart, May 24, 2019

The S&P 500 broke down rather significantly during the trading session on Thursday, slamming into the uptrend line underneath that has been so crucial. At this point, it looks as if the market will test the 2800 level, and at this point it’s very likely that level will determine whether or not we can stay in and uptrend. This is an area that has been massive importance lately, and I think it will continue to offer support. However, if we break down below that level and close below there on a daily chart, things could get ugly rather quickly.

S&P 500 Video 24.05.19

In general, I think that we are trying to figure out what to do next and I believe that the next several sessions will be very difficult to deal with. Beyond that, you should keep in mind that the Friday session will be rather thin, as traders will be focusing on Memorial Day holiday plans, so it’s very likely that the market will see a lot of thin and of volatile short-term back and forth trading.

Beyond that, the Monday session of course is the actual holiday so it’s likely that will impact the market as well. All things being equal, we probably won’t get a true answer as to where were going longer-term until Tuesday or so, but clearly the 2800 level and the 200 day EMA just below are both crucial areas to watch. If we break down below there, the trend will be over and we will go much lower. It’s not a huge surprise quite frankly if that happens, there are so many different things moving through the global economic system.

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