S&P 500 Price Forecast – Stock Markets Looking for Support

The S&P 500 has fallen significantly during the trading session on Friday, slicing through the 3400 level during the day. Having said that, it looks as if we are trying to recover a bit so if the 3400 level does in fact stabilize everything, then it is likely that we will continue to see market participants jump in and try to take advantage of what has been a nasty pullback. This pullback offers value for those who are wanting to own the market for the longer term, and it does make sense that we recovered a bit after slicing through what is an obvious support level.

S&P 500 Video 07.09.20

Ultimately, this is a market that has a lot of buyers still out there looking to pick up stocks because they are “cheap”, and of course we have the Federal Reserve out there flooding the market with liquidity should continue to help the idea of stocks going higher. Even if we do break down below this area, it is likely that the 3350 level will offer support, followed by the 3300 level, and then eventually the 3200 level.

After a massive breakdown like this, it is likely that the market will be very noisy towards the bottom, as traders will close short positions going into the weekend. With this, it is likely that we will find plenty of reasons to go long but you need to see a stable day before you get involved. I would be very cautious about jumping in right now, but clearly shorting is something that you cannot do after all of this.

For a look at all of today’s economic events, check out our economic calendar.