S&P 500 Price Forecast – Stock Markets Get Hit Hard on Thursday

The S&P 500 has broken down significantly, losing over 3% by midday in the United States as stock traders took a bit of a hit. The market has been overdone for some time, so this was something that was desperately needed. At this point, the 3200 level has offered significant resistance, but I still believe that the 3000 level is going to attract a lot of support. This pullback is needed, and quite frankly has been needed for a while. With that in mind, I do not look at this as changing the game quite yet, although it is odd to see this market loose this much in one session, as it has been a while since we have seen this type of trading.

S&P 500 Video 12.06.20

The 50 day EMA is currently at 2956, with the 200 day EMA at basically the same level. In other words, the “golden cross” is forming. Looking at this chart, it is still difficult to short, simply because the risk to reward is still higher to the upside, and therefore a little bit of patience may go a long way as there should be nice set ups. If we give up the 3000 level, then we could start to see a little bit more of a psychological breakdown of the market.

There are a lot of questions as to whether or not the stock market should be up at these levels, but quite frankly it does not really matter what it “should do.” Unfortunately for us traders, that is something that we tend to pay far too much attention to. Price is price, never forget that.

For a look at all of today’s economic events, check out our economic calendar.