S&P 500 Price Forecast – stock markets get hammered again on Friday

The S&P 500 continues to show weakness, as we have rolled over and broke down below the three shooting stars that had formed on the previous three days. At this point, it looks as if we are going to test the 2600 level, an area that has been massive support. The market looks extraordinarily soft at this point, and susceptible to selling pressure. Rallies at this point are not to be trusted, and I think that will continue to be the way going forward. If we do break down below the hammer from Monday, the market could break down towards the 2500 level. Rallies at this point will struggle to get above the 2700 level, and I think that is starting to become the ceiling at this point.

S&P 500 Video 17.12.18

Chinese economic figures overnight were horrible, and several other numbers, including the PMI figures out of the United States were also soft. At this point, I think it’s only a matter of time before we break down, and even if we do turn things around as we close, I think it’s only a matter of time before there’s another reason to sell. Ultimately, I believe that we are going to see continued weakness going into the new year.

If we did manage to break above the 2700 level, then you need to worry about the 50 EMA, which is very negative, as it is starting to slope lower. The 2800 level above there had been massive resistance in the past, but quite frankly at this point I think I would be a bit surprised if we even tested it.