S&P 500 Price Forecast – Stock markets pulled back suddenly

The S&P 500 has had a very tough trading session on Wednesday, as we have broken down rather significantly towards the 2800 level. Not only that, we have seen an acceleration to the downside but at this point it looks as if we can stay above the 2790 handle, we are probably in decent shape. That being the case, I believe that this will end up being a buying opportunity but if we break down below the 2780 handle, it looks very likely that we could drop down to the 50 day EMA at the 2750 handle.

S&P 500 Video 28.03.19

Quite frankly, a lot of this was probably machine driven, and therefore it’s hard to tell whether or not it is “real.” With that being such a major issue, it’s difficult to discern whether or not we can reach the highs again, but at this point it looks likely that we are at least going to see some type of bounce. If we do break down below the 50 day EMA, then the 200 day EMA comes into the picture, near the 2725 handle.

We are in a range of extreme volatility, as the market has been far too extreme in one direction or the other for some time. However, it does look as if there is more momentum to the upside from the longer-term charts, so therefore one would have to favor buying dips in this scenario as the market could be offering “value” at this point in time.

Please let us know what you think in the comments below