S&P 500 Price Forecast – Stock markets rally after jobs figure

The S&P 500 has rallied a bit during the trading session on Friday, reaching towards the 2900 level. That’s an area that extends about 20 or 25 points higher, so it’s not until we break above there that the “all clear is sounded”, so therefore we will probably see a pullback in order to try to break above there. The 2790 level underneath offers massive support, so this point it’s very likely that the buyers will return to this market as we most certainly will make an attempt to break out. The question now is whether or not we can do that. It’s going to take an extraordinarily large amount of momentum.

S&P 500 Video 08.04.19

I would anticipate a lot of volatility going forward, as the market has to come to grips with the lot of questions. Beyond the technical set up we need to pay attention to the US/China trade relations, which of course will have a massive influence on stock markets in general. The question now is whether or not it’s a “sell on the news” type of event. It’s hard to determine that yet, but that is a clear and present danger.

As a general rule I’m not selling until we break down below the 2790 handle, and I look at short-term pullbacks as buying opportunities but would not do so with a full position. I think that short-term small trades looking for bounces will probably continue to be the way forward.

Please let us know what you think in the comments below