S&P 500 Price Forecast – Stock Markets Pulled Back on Wednesday

The S&P 500 has pulled back a bit during the trading session on Wednesday, reaching down to wipe out the gains of the previous session. I think that we are about to see an epic fight between the buyers in the sellers in this general vicinity, so I believe the best trade is to wait for the next impulsive candlestick and simply follow it. We are right at the 50 day EMA and the 50% Fibonacci retracement level, along with the psychologically important 2800 figure. In other words, there is so much going on at the same time technically that it is difficult to put a lot of faith and what would essentially be gambling.

S&P 500 Video 16.04.20

If we do break down from here though, I think the market probably comes down to the 2650 level. On the other hand, if we break above the highs of the past couple of sessions, then we will go looking towards the gap above near the 2950 level. This is also basically where the 61.8% Fibonacci retracement level, which also features the 200 day EMA. In other words, I do think that the upside is somewhat limited even if we do break higher. At this point, we are trying to decide whether or not this is been a bear market rally, or if there was some type of reality behind the most recent move. I have my opinion, but my opinion doesn’t necessarily mean that it will make money. The next break will tell us where we go. Until then, you should probably sit on the sidelines.