S&P 500 Price Forecast – Stock Markets Ignore Reality

The S&P 500 has rallied during the session on Wednesday, to test the top of the shooting star from the previous session. Ultimately, this is a market that I think continues to see a lot of trouble above, and I do think that it is going to be difficult to break above the 3000 handle. Given enough time, it is likely that we turn around and breakdown towards the 2800 region, which is the bottom of the overall consolidation area from the last couple of months.

S&P 500 Video 21.05.20

The candlestick looks rather healthy, but at the end of the day the volume is not. Because of this, the market is likely to see that the volatility is a major issue, and therefore I think that we go back into the range more likely than not. However, if we were to break above the 3000 handle, then it is likely that the market will explode to the upside, and all hints of negativity or reality with the economy giving way. Ultimately, this is a market that ignores reality for so long, and then it suddenly comes crashing down. The question is will it now? I cannot tell you that, but I do recognize that the move lower is probably a little easier than the move higher, despite what the early morning trading tells you. If we end up forming a shooting star during the trading session, then it is going to be an extraordinarily negative turn of events.

Stock markets continue to ignore reality, as the S&P 500 is testing the highs again. That being said, there is a tremendous amount of resistance just above, and as we had seen during the last hour of trading on Tuesday, it only takes a whisper of negativity to send this market crashing back down.