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

The S&P 500 rallied a bit during the trading session on Friday but ran into a bit of trouble at the 2500 region. By pulling back the way we have, we have formed a rather ugly candlestick, but it should also be noted that just below at the 2350 level, there has been plenty of buying. In other words, this is a market that looks as if it is trying to find some type of base.

S&P 500 Video 23.03.20

If we can break above the 2500 level on a daily close, then I think that the S&P 500 should rally towards the 2700 level. The alternate scenario of course is that we break to a fresh, new low, which would open up the possibility of driving down towards the 2100 level, which is the beginning of support that extends down to the 2000 level. Regardless, I think it’s obvious that there are a lot of concerns out there when it comes to the coronavirus so even if we do get a bit of bullish behavior, it is probably more or less going to be a short-term situation more than anything else.

The candlesticks over the last couple of weeks have been more of a choppy type of situation so it certainly shows that the market is at least trying to find some type of excuse to rally. Looking at this chart, it’s obvious that the volatility is going to be a major issue. If you are bullish of this market and you do get the signal to start buying, it’s one thing to do so, but you need to do so with small bits and pieces in order to build up a larger position over time. Jumping “all in” would be a great way to lose money.