S&P 500 Price Forecast – stock markets pulled backStock markets pulled back to kick off the week on Monday, as we continue to grind at relatively high levels. After seen this massive recovery lately, it’s not a huge surprise that we are struggling to continue.
The S&P 500 pulled back a bit during the trading session on Monday, testing the 50 day EMA as we continue to rotate in this general vicinity. We are basically at an inflection point in the market, and at this point I think that we are going to see a lot of resistance above at the 2700 level, just as we see a lot of support at the 2600 level underneath. In the short term, I think we will continue to see a lot of back-and-forth trading, giving us an opportunity to pick up short-term trades, but from a daily perspective it will be a bit difficult.
S&P 500 Video 29.01.19
If you look to the left, you can see that there is a lot of choppiness at the same level, so it makes sense that the market isn’t quite ready to go in one direction or the other. I think we will continue to see volatility and the fact that we are in the middle of earnings season, and in fact are starting the busiest week of earnings season, it will makes sense that we continue to go back and forth. If we can break above the 2700 level, this market can continue to go to 2800 rather easily in my estimation. Otherwise, if we turn around and break below the 2600 level, then I think the market will go looking towards 2500. Between now and then, expect a lot of range bound trading which could offer short-term opportunities for those who are nimble enough to trade them.