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

The S&P 500 has rallied significantly during the day on Tuesday, breaking above the top of the hammer from the Monday session. This was a classic signal to start buying, as the hammer that formed during the previous session at such a large round figure of course will have caught a lot of technical traders attention. With that being the case, it looks as if we could go grinding towards the highs again but obviously is going to take some work.

S&P 500 Video 27.03.19

Underneath the 2800 level we have a lot of buying pressure and volume and have recently seen the “golden cross” that a lot of longer-term traders pay attention to. With that in mind, it’s very likely that we will continue to see choppiness with an upward bias as the stock markets have been so resilient over the last couple of months. To the upside, the 2900 level offers a significant barrier to overcome, but it most certainly at this point looks to be the target.

It’s not until we break down below the 200 day EMA, pictured in blue on the chart at the 2723 level that I would consider shorting the S&P 500. I think that this market continues to find plenty of buyers, regardless of all of the major global geopolitical and economic concerns. At this point it seems that the US is where everybody wants to invest, so in a sense the S&P 500 is somewhat of a safety play for equities traders in places like Asia or Europe. As long as the US economy outperforms others, the S&P 500 will have a bit of a de facto bid.

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