S&P 500 Price Forecast – Stock Markets Kick Off the Week With Optimism

The S&P 500 rallied a bit during the trading session on Monday, kicking off the week with a positive tone. There is still the same resistance above that we had seen over the last couple of weeks, with the 200 day EMA sitting at the 2947 handle. There is also a gap in that same general vicinity in which is even more telling, as it should offer significant resistance. Beyond that, there is also the 61.8% Fibonacci retracement level sitting right at the same area as well. In other words, even if we do rally from here there is a high chance of seeing a lot resistance.

S&P 500 Video 28.04.20

We are in the midst of earnings season, and I cannot imagine any good news coming out of that. The question now is whether or not stock traders are going to look past the earnings calls, because they will have to in order to be even remotely bullish. While the economies around the world are starting to talk about reopening, the reality is that there has been an extraordinarily large amount of damage done to the global economy, something that is not going to be fixed overnight. That being said, it is worth noting that volumes have been very thin on the way up, not necessarily an overly bullish sign. If we can break down below 2750 underneath, it could open up the so-called “trapdoor” that could send this market much lower. Fading rallies will more than likely be the way traders look at this market.