S&P 500 Price Forecast – Stock markets get hammered

The S&P 500 has initially tried to rally during the trading session on Friday, but then collapsed underneath the 50 day EMA. At this point, I think the market may go looking towards the support level closer to the 2900 level, as there is a lot of concern out there due to Donald Trump looking to add tariffs against the Chinese, and of course the Federal Reserve of course isn’t going to help the situation because they were fairly ambiguous about what was happening next with rates.

S&P 500 Video 05.08.19

To the upside, I believe that the 50 day EMA will now be resistance, and it is likely that what we will see next is a “sell on the rally” type of attitude. However, if we take out the candle stick from the Friday session, that is a very bullish sign, and could send this market looking towards the 3000 handle yet again. Quite frankly, it’s been a while since the S&P 500 has had a nice sell off, so this is probably overdue.

To the downside, if we break down below the 2900 level, then we could probably go down to the 2850 level, which is the 200 day EMA. All things being equal, this is a market that is going to offer value given enough time, and I’m pretty sure that the Federal Reserve will do whatever it takes to make the stock market go higher. Ultimately, this is a market that looks like it’s got more negativity coming, but eventually value hunters will return.

Please let us know what you think in the comments below