S&P 500 Price Forecast – Stock Markets Greater Again

The S&P 500 went limit down overnight, as the E-mini contract has been hammered yet again. At this point, it will be interesting to see whether or not the market can pick itself up, as we reached all the way down towards the 2400 level. At this point though, we have seen a little bit of a bounce during the day, so I think at this level we are trying to figure out where to go next. There is a White House press conference at 330 later in the day, so it is possible that the US government will do something from a fiscal standpoint to stem losses but at the end of the day there is only so much that monetary policy can do. The biggest concern that most people are going to have is whether or not the infection rate will slow down, not what the monetary policy is going to be.

S&P 500 Video 17.03.20

At the 2400 level I see a certain amount of support, so that gives way on a daily close we could go much further to the downside, possibly down to the 2100 level. I have no interest in trying to “catch a falling knife”, so I believe at this point it is probably best to simply sell rallies or wait for a longer-term bullish signal. Currently, we don’t have either so unless you are too short of this market there is in a whole lot to do. With that, I believe that the 2700 level right now is the temporary ceiling in the market. I do think that we will see bearish pressure come and go in a bit of a rolling bear market.