S&P 500 Price Forecast – Stock markets pulled back

The S&P 500 tried to rally initially during trading on Tuesday but then fell to reach lower levels. We have been consolidating for some time, and it’s obvious that the market is trying to figure out its next move. Quite frankly, unless you absolutely have to be involved in this market, there’s probably no reason to put money in it.

S&P 500 Video 06.03.19

The bottom of the candle stick for the Monday session should be supportive, so as long as we stay above there I would say that the odds are that we get a break out to the upside, but clearly we are simply just killing time at this point, and perhaps trying to build up the necessary momentum.

I believe that the main driver of the next move will be the US/China trade talks, which of course have been concluded. Because of that, the market is probably more or less in a “holding pattern”, although we do have the jobs number on Friday which can have a major influence on what happens next as well. Simply put, it looks like we are in and uptrend but we are trying to build up the confidence to break out. A move above the 2820 level is reason enough for me to get involved to the upside. The fact that we are comfortable hanging around in this general vicinity after a major rally and haven’t pulled back significantly is a very good sign actually, because it shows that we are comfortable and not concerned about overhead resistance. In fact, the longer we remain here the more likely we are to break out.

Please let us know what you think in the comments below