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

The S&P 500 has rallied a bit during the trading session on Tuesday, showing signs of strength that the 50 day EMA. Having said that, the market has a gap above that will attract a lot of attention, as well as the 200 day EMA near the 2940 level. Any signs of exhaustion between here and there should be a nice opportunity to go short again, as this is a market that has so much in the way of an overhang at this point.

S&P 500 Video 06.05.20

The 50 day EMA underneath of course offers quite a bit of support, so if we were to break down below it, will open up the opportunity down to the 2800 level, and then after that we could get a significant break down towards the 2640 handle. Having said that, the market was to break above the 200 day EMA, then the 3000 level will be targeted. That is an area that obviously would attract a lot of attention, as it is a large, round, psychologically significant figure. At this point in time, I like the idea of fading rallies but also recognize that this market has been extraordinarily resilient for quite some time.

The 61.8% Fibonacci retracement level is sitting right there at the 200 day EMA as well, so having said that it is likely that there are plenty of sellers waiting to jump on to this market. With the jobs number coming out on Friday, that could be the beginning of the end of this rally as well. However, if we break above the 200 day EMA and then eventually the 3000 level, then it is likely to go higher.