S&P 500 Price Forecast – stock markets plunge on Friday again

The S&P 500 fell a bit during the trading session on Friday, reaching down towards the 2650 handle by midday. However, we are still very much with in a consolidation area, so I think it’s only a matter of time before we get a bounce.
S & P 500 daily chart, December 10, 2018

The S&P 500 ended the week rather sloppily, but the 2600 level underneath is massive support as we have seen more than once, so I think it is possible we could get buyers. However, if we break down below the 2600 level that could unleash the market towards the 2500 level. I think there are a lot of concerns out there when it comes to the US/China trade talks, and of course global growth.

S&P 500 Video 10.12.18

I believe that the 2800 level above would probably be the target, as it is the top of the overall range. We are getting close to the end of the year and I think a lot of people will have to jump into the market to try to make some type of profit for their customers. If we do break down below 2600 though, that could throw a lot of volatility and fear into the market. Ultimately, this is a market that I like for a range bound play between 2620 800, but if we were to break above the 2800 level, we could then go to the 2900 level. This is a market that continues to be very volatile and driven on headlines but given enough time I think we will get some clarity as we approach New Year’s. Keep in mind that there is only a week or two of volume left though, so the later we get into the month, the more erratic this could be. I keep my position size small.

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