S&P 500 Price Forecast – Stock Markets Get Hammered

The S&P 500 has broken down a bit during the trading session on Thursday, as there is a bit of a sector rotation going on underneath the hood. Nonetheless, we have also gotten a bit ahead of ourselves and we have to worry about the jobs number on Friday. The 3500 level is of course going to offer a bit of psychological support, so by the time the market actually closes for the day we could very well bounce from here. Ultimately, the 3600 level above continues to be a massive resistance barrier and when you look at the longer-term charts it is obvious that this market does tend to prefer trading in 200 point increments.

S&P 500 Video 04.09.20

The 3400 level underneath is massive support, and at this point in time I think that the 50 day EMA is going to go looking towards that level. Looking at the candlestick for the day so far, this clearly shows that there is a lot of concern. If we can break down below the candlestick for the trading session on Tuesday, that opens up a move down to 3400. Nonetheless, at the very least I think it makes a lot of sense that people would be booking gains heading into the jobs number, but even with this nasty looking candlestick we are still very much in an uptrend and it is a “buy the dips” type of market. Look for value, and then take advantage of it.

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