S&P 500 Price Forecast – Stock Markets Give Back Gains Early in Day

The S&P 500 rallied quite significantly during the trading session on Tuesday, reaching towards the 3150 level. However, we have given back quite a bit of those gains in order to form a bit of a shooting star, so therefore I think it makes sense that we pull back a little bit from here. Furthermore, we did not break above the top of the massive breakdown candle from last week, so I think there is still some work to do. Quite frankly, the market had gotten way ahead of itself in the Globex session, and therefore we had to get back to reality.

S&P 500 Video 17.06.20

Furthermore, the Federal Reserve Chairman Jerome Powell had been speaking in front of the Congress of the United States, thereby having the US dollar go back and forth and of course people looking for some type of reason to panic. With that in mind, I believe that we may try to get to the recent highs at the 3200 level again, but we may need to pullback in a little bit of value hunting. The 50 day EMA and the 200 day EMA are crossing just below, which of course is technically supportive for this market as well.

Nonetheless, it is exceedingly difficult to short this market until we break below the 2800 level or unless we get some type of major event. That potential event? Beijing is currently being locked down for an increase in coronavirus infections again. However, it will be interesting to see how this plays out but right now I do believe that the block of trading between 2820 975 continues offer a huge buffer for losses.

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