S&P 500 Price Forecast – Stock markets get hammered

The S&P 500 broke significantly to the downside during the trading session on Friday, as we have cleared the 200 day EMA. With that being the case, it makes sense that we could continue to see a bit more downside pressure.
Christopher Lewis
S&P 500 daily chart, June 06, 2019

The S&P 500 fell during the trading session on Friday, slicing through the 200 day EMA. By doing so, and closing at the bottom of the candle stick, it looks very negative in this market. I believe we are going to continue to see a lot of bearish pressure, and it’s very likely that we could continue towards the 2700 level. Short-term rallies will more than likely offer selling opportunities that we can take advantage of.

S&P 500 Video 03.06.19

To the upside, I see the 2800 level as being massive resistance, and it will be difficult to break above there. If we were to break above the 2800 level, then it could change a few things. However, we have recently broken through a couple of uptrend lines and coinciding with a break down below the 200 day EMA, it makes sense that we could continue to go much lower.

2700 should be supportive but breaking down below there could open up the door down towards the 2600 level, maybe even down to the 2500 level. I don’t expect that to happen in the short term, but the fact that we are closing at the low of the candle stick normally means we are going to continue to see even more selling pressure. Obviously, there are a lot of concerns when it comes to the global growth story and of course the US/China trade situation, which doesn’t seem to be getting better. To add even more fuel to the selling pressure is the fact that Donald Trump has just suggested that the Mexicans are is next target.

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