S&P 500 Price Forecast – Stock Markets Give up Early Gains

The US stock markets initially rallied in the futures market overnight as people got wind of the idea that the US government was going to do some type of fiscal stimulus. This of course is something that people desperately wanted to see so there was a bit of a “relief rally” in the market. However, the 2900 level has offered enough resistance to roll the market right back over as Donald Trump has tweeted that Nancy Pelosi wasn’t going to be able to meet sometime this week, suggesting that she was “off to vacation.” This underlines the massive amounts of problems that the US government currently has as far as cooperating, so therefore it’s more of the same.

S&P 500 Video 11.03.20

The markets have been rattled for a while now, so this is probably the last thing that they need to see. The fact that the 2900 level has held suggests that the market is going to go pressure in the 2700 level underneath which is where we had bounced from previously. Because of this, I do believe that it is only a matter of time before we get that breakdown, as the markets clearly have to worry about not only the coronavirus but the “knock on effect” after things clear out. Because of this, rallies are to be sold into going forward as the simply cannot be trusted. With that being the case I like the idea of shorting rallies until something substantial happens. Right now, that hasn’t happened and therefore this rally looks more or less like a short covering rally than anything else.