S&P 500 Price Forecast – Stock Markets Rally on Optimism

The S&P 500 has rallied significantly during the trading session on Monday, reaching towards the 200 day EMA yet again. This is a market that is trying everything you can to rally but seems to be stuck with the idea of the 3000 handle above. I do believe that we probably pull back from here, because quite frankly the rally seems to be based upon a few errant comments by Jerome Powell of the weekend, and then of course the coronavirus test of a vaccine that works for eight people over the weekend. In other words, this is ridiculous. That being said, it is likely that it was simply just an excuse to run the market back up to the highs again.

S&P 500 Video 19.05.20

This is a sideways and choppy market, and it is difficult to trade unless you are patient enough to wait to get to the top and bottom of the range, something that most traders are patient enough to do. However, if we get some type of exhaustive candlestick then it is likely that we will see this market rollover again and start reaching towards the 2800 level. This is a market that is simply chopping around, moving on the latest headline, or “feeling” coming out of the headlines. In other words, it is purely emotion driven and has nothing to do with the economy. Because of this, you need to be overly cautious and keep your position size very small if you plan on risking anything in this market. Ultimately, I think there is a lot of noise between here and 3000, so this is a market that looks very suspicious.