S&P 500 Price Forecast – Stock Markets Looking Likely To Pull Back

The S&P 500 is currently looking at the 3200 level, and I do think it’s probably only a matter of time before we try to get back down there, because after the massive selloff that we have seen, this is probably more or less short covering. Don’t get me wrong, I don’t necessarily think that you should be selling this market, but rather you should be looking for value at lower levels. If we can break below the 3200 level, then it’s likely that we will go looking towards the 3150 level, an area that has been supported in the past as well.

S&P 500 Video 04.02.20

I think at this point the situation in China is still a bit too undecided right now to jump in with both feet, but I am the first to admit that this market seems to continue to show signs of strength. At this point, the market is likely to continue to see a lot of noisy action, and therefore there’s no need to jump in right away. You should have plenty of opportunity on dips as they will offer plenty of value, especially down at the 50 day EMA. Even if we broke down that far I would not be dissuaded from buying the S&P 500 longer term, because quite frankly the Federal Reserve is more than likely going to step in and of course it would be a healthy pullback, something that this market has desperately needed occasionally. We are overbought, so I don’t fear any drop, but I certainly wouldn’t sell it.

Please let us know what you think in the comments below