S&P 500 Price Forecast – stock markets rally on FridayStock markets rally during the day on Friday, showing signs of life again. The S&P 500 of course was no different, as we reached towards the highs of the week again.
The S&P 500 rallied a bit during the day on Friday, reaching towards the top of the weekly range, as it looks like we are trying to reach towards the 2700 level. If we can break above that level, then I think the market is free to go much higher, perhaps taking out the 2800 level and wiping out the entire negative move that we had. If that’s the case, we could see this move happen early next week.
S&P 500 Video 28.01.19
Pullbacks at this point should continue to see support underneath, especially considering that the 50 day EMA, pictured in red on the chart, is just below and is starting to turn higher. The 2600 level underneath is massive support, so if we break down through there, it’s a very negative sign. Not only is it a break of support, but it is a break of a hammer on the weekly chart, which would turn that into a “hanging man”, which of course is a very negative sign itself. All of this being said, it does look as if the moving averages are starting to support the market, and that short-term pullbacks will continue to be buying opportunities. I don’t have any interest in shorting this market until we break down below the 2600 level, so dips could be picked up for short-term gains from what I see.
Keep in mind that we are in the middle of earnings season, and quite frankly headlines will continue to come out that push the market back and forth. Beyond that, if we can get a resolution of the government shutdown or the US/China trade relations, that will turbocharge the market that has already been lifted by the Federal Reserve softening its stance.