S&P 500 Price Forecast – Stock Markets Limp Into the Weekend

The S&P 500 initially tried to go green and bullish early during Asian Globex trading but gave back the gains quite rapidly. By doing so, it looks as if the market continues to dance around the 50 day EMA, a technical indicator that a lot of traders will pay attention to. Ultimately, I think that it is only a matter of time before we have to make a longer-term decision, but right now the market is still respecting the 2800 level on the downside, and the 2950 level at the top. Furthermore, the 2950 level is backed up by the 200 day EMA and the 3000 level.

S&P 500 Video 18.05.20

At this point, the market is likely to continue chopping back and forth, but if we do break down below the bottom of the hammer and of sensibly the 2800 level, it is likely that we go looking towards the 2640 handle. Looking at this chart, I do think that we are running into a significant amount of resistance and the market is starting to roll over from a longer-term standpoint, but I do think that eventually we go to the 2640 level. To the upside, it is not until we break above the 3000 level that I would be comfortable buying, because quite frankly this is a market that just looks lackluster as of late. The 61.8% Fibonacci retracement level has offered significant resistance as well, and therefore we see a multitude of reasons to start selling off from a technical analysis point of view.