S&P 500 Price Forecast – Stock Markets Likely to Pull Back Toward SupportThe S&P 500 has had a choppy session, as the market initially tried to rally during the Globex session, but then fell hard going into the New York session.
The S&P 500 has initially tried to rally a bit during the trading session on Thursday, but then broke down rather significantly, especially during the Europeans session. As the Americans came on board, we did, flatten out a little bit but ultimately it is likely that we will see this market chop around and go back and forth. At this point, the market looks a little bit heavy and we may need to pull back a bit towards the 3000 level to find support again. After all, there are a lot of moving pieces right now but the one thing that has been lifting the stock markets in general has been that the Federal Reserve is willing to do whatever it takes to bail them out.
S&P 500 Video 19.06.20
As long as the Federal Reserve is bailing the market out, they will not necessarily reflect economic reality. This has been difficult for a lot of traders to come to terms with, as the macro economic conditions do not warrant stock markets trying to get to the all-time highs again. However, that is a market that we are living in so I look at it this way: we may very well pull back towards the 3000 level, but I am not willing to sell the S&P 500. In fact, I am looking to buy on dips. If you are asking me my personal opinion, no absolutely not – the stock market has absolutely no business being in this general vicinity. However, price is essentially truth, and that is the one thing that you need to remind yourself.
For a look at all of today’s economic events, check out our economic calendar.