S&P 500 Price Forecast – stock markets rally as Turkey blinks

The S&P 500 was very noisy in premarket trading on Monday as fears about the US dollar strengthening too much because of the Turkish lira crashing gripped the market. There was also concern about European banks and whether or not there exposure to Turkey would be deadly. Beyond that, it’s also a concern that perhaps American banks are exposed to Turkish debt. Ultimately though, US exposure to Turkish debt seems to be rather limited, so it would not surprise me at all to find that this will eventually be thought of as “much ado about nothing.”

Overall, if we can break above the 2843 handle, it looks as if the market will try to move another five point, and then eventually to the 2860 level. That’s an area that has been significant supply, but you can see that we have already busted through several negative candles during the day, with extreme momentum. Because of this, I think that what we are going to see is a recovery towards the highs again. You clearly have a stop area somewhere near the 2820 handle, and of course the 2800 level which has been significant support on the longer-term charts. In general, I am bullish of this market on pullbacks, and we certainly have gotten a nice one that value hunters are trying to take advantage of. That doesn’t mean that we are going straight up, but I would look at short-term pullbacks, barring some type of horrible headline, as a buying opportunity.

S&P 500 Video 14.08.18