S&P 500 Price Forecast – Stock Markets Rally After Horrific Jobs Number

The S&P 500 has rallied during the trading session on Friday, reaching towards the 200 day EMA. This is an area that should continue to offer resistance though, and quite frankly I think that we will see traders step in and fade this market overall. I believe that it is only a matter of time before we reach back towards the 50 day EMA. Yes, the stock market has rallied under extremely bleak circumstances, but there is a significant concern when it comes to the rate of change, which is slowing down for most traders. At this point, there is a lot of potential vulnerability just above, not based solely upon the 200 day EMA but also the 61.8% Fibonacci retracement level, and the 2950 level.

S&P 500 Video 11.05.20

To the downside, I would anticipate that the 50 day EMA offers some support but quite frankly it would not surprise me to see this market go even lower than that. If it does, then we could make a serious plunge towards 2640. That being said, this all comes down to the ability of Wall Street to “look beyond” the jobs figures. As time goes on though, the economic numbers should start to reflect the fact that a lot of the jobs that were lost probably will not be coming back anytime soon. The alternate scenario of course is that the market breaks above the 3000 level and takes off to the upside. That seems to be very unlikely but if it does I would not argue with it.