S&P 500 Price Forecast – Stock markets rally on Tuesday

The S&P 500 rallied quite nicely during the trading session on Tuesday, bouncing from the 2800 level. That being the case, it looks very likely that we will continue to see a lot of volatility, as we approached the 2850 level, and perhaps even more importantly the 50 day EMA. It is starting to roll over a bit, so the short term momentum is starting to drop. That being said, as I record this the candlestick is towards the top of the range so it will be interesting to see what happens next.

S&P 500 Video 15.05.19

This is all about the US/China trade relations at this point, so we are simply a headline away from the markets either shooting straight up in the air or falling apart. At this point, if we break down below the 2800 level, then we could break down rather significantly, perhaps down to the 2750 level next. Below there, we will be significantly below the 200 day EMA and we could break down significantly from there. In general, if we break to the upside, we could go to the 2900 level, perhaps even 2950. However, we need some type of positive resolution to the US/China trade tensions for that to happen.

I think at this point, you need to recognize that the attitude in the market has certainly shifted, and we have broken down below two hammers recently, so even though we are seeing positivity during the trading session on Tuesday, the reality is that there has been an extraordinarily significant amount of damage done.

Please let us know what you think in the comments below