S&P 500 Price Forecast – Stock Markets Pull Back into the Weekend

The S&P 500 pulled back a bit during the trading session on Thursday to reach down towards the 3200 level, an area that previously had been massive resistance. At this point in time it makes sense that we would pull back to this level in order to find a little bit of value. At this point, the markets likely to go higher and therefore if we bounce a bit it is likely that FOMO traders will get involved. The last couple of days have been kind of ugly, but honestly this is a market that desperately needs a pullback occasionally in order to find a bit of value.

S&P 500 Video 27.07.20

I believe that eventually we will go looking to fill the gap above, which is closer to the 3350 area. If we can break above there, it is likely that we could go to the 3400 level. That is the major all-time high, and therefore it is likely that we would see a lot of interest in trying to break above there, but at this point I think it is only a matter of time before somebody gets the idea to go towards that area. However, the meantime we could even break down a bit further, reaching down towards the 3100 level. The 50 day EMA is approaching that area as well, so it is only a matter of time before the buyers get involved one way or the other. The question is whether or not 3200 level will hold? I am a buyer of dips and have no interest in shorting this market as the Federal Reserve is pumping the markets full of liquidity.

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