S&P 500 Price Forecast – Stock Markets Plummet In Global Rout

The S&P 500 has gapped lower to kick off the week, as the Saudi price war against other oil-producing nations has spook the markets. Quite frankly, there are a lot of concerns about credit when it comes to petroleum producers, and as a result it’s very likely that we will continue to see trouble. The market has bounced a bit after kicking off circuit breakers, losing over 7%. At this point in time, it’s very likely that the market will continue to find sellers, even though we are more than likely going to get a little bit of a bounce. There is a gap that will probably be tested, but there should be plenty of sellers in that general vicinity so I’m looking for a short-term selling signal. In the meantime, it’s probably best to step away from this market as it is so heavily shorted.

S&P 500 Video 10.03.20

The alternate scenario is that we simply rollover from here break down below the 2700 level, which would be horrific as far as the trend is concerned. If that happens, then it’s very likely the 2500 level will be the target. At this point, there is no way you can buy this market and the bounce is probably more or less a function of short covering than anything else. Short-term traders have made a lot during this session and are willing to sit on the sidelines now. At this point, the market need several days of stabilization before it can rally for any significant move to the upside. Participants are waiting to see what the central banks will do and of course financial actions coming out of governments.