S&P 500 Price Forecast – Stock Markets Hit The Same Resistance Level Again

The S&P 500 has rallied towards the 2880 level again during the trading session on Thursday but has struggled at the same area midday as there is a gap that we still have not been able to break through. The 200 day EMA above has offered a significant amount of resistance recently, just as it sits not only at a gap, but also the 200 day EMA. If the market were to show signs of exhaustion again, I would be a seller. That being the case, I think what we are going to see by the end of the day on Friday is the market continuing to grind back and forth. Quite frankly, Wall Street already knows that there are going to be more than 20 million unemployed Americans. That announcement will not be much of a shock to anybody who has been paying attention.

S&P 500 Video 08.05.20

To the downside, if we were to break down below the 2800 level, it could set up a move down to the 2640 handle. To the upside, we need to clear the 200 day EMA in order to get overly bullish, but even then, I would anticipate that the 3000 level could cause some issues. Above there, then this pair almost certainly will try to go to the upside. The VIX is still elevated, so this means that there are still a lot of concerns out there when it comes to stocks. That does not mean we have to break down, just that eventually we probably will.