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S&P 500 Price Forecast – Stock Markets Have Rough Wednesday

The S&P 500 fell a bit during the trading session on Wednesday after forming a relatively soft candlestick on Tuesday. At this point though, we are still in the same range.
Christopher Lewis

The S&P 500 has fallen a bit during the trading session on Wednesday, breaking below the 2500 level initially, but as the Americans started to trade the cash markets, things calmed down a little bit. At this point, the market is very likely to continue going back and forth but one would have to think that it’s only a matter of time before we get another push lower, because quite frankly the market needs to test the lows again to build the type of confidence needed in order to go higher. That doesn’t always happen, but typically is the norm for some type of meltdown like this.

S&P 500 Video 02.04.20

In the short term, if we break above the 2650 level, then it’s likely that we go looking towards the 2750 level. After that, we could be looking at the 50 day EMA which is currently near the 2850 level. To the downside, if we break down below the 2450 handle, then I think the 2400 level gets tested and after that the 2200 region. I think at this point it’s difficult to tell exactly what’s going to happen but it’s obvious that the market will be volatile regardless of what happens. Pay attention to headlines about credit markets, because of the stabilize a bit that could help stock market confidence as well. Either way, as it becomes apparent that the slowdown from the coronavirus is going to be longer than initially anticipated, anticipate that the stock markets will continue to struggle in general. That being said, we have to follow price so if we break out to the upside then there’s no point in arguing.

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