S&P 500 Price Forecast – Stock Markets Pulled Back Among More Virus Scares

The S&P 500 has pulled back a bit during the trading session on Thursday to kick things off, but the Americans are trying to hold the trendline that I have marked on the chart. The 3250 level has been supportive in the past, and then the 50 day EMA underneath there should offer support. Ultimately, this is a market that should continue to go higher given enough time, but obviously it is a bit sensitive to the idea of some type of pandemic. A break above the highs from the trading session on Thursday opens up the door to the 3300 level. If we can break above there, then the market is likely to go to the all-time highs. The 50 day EMA underneath would offer quite a bit of support, just as the 3200 level would be.

S&P 500 Video 31.01.20

If we were to break down below there, it’s very likely that the market could unwind down to the 3100 level. That is an area that would probably coincide quite nicely with the 200 day EMA and a breakdown below that would of course be a major trend change. At this point, the market is very likely to continue to find value hunters, as the central banks around the world will continue to liquefy the markets and support the stock markets as such. The initial pullback was due to fears of the virus, but at the end of the day the only thing that has mattered over the last 12 years has been the Federal Reserve and its ability to add quantitative easing.

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