S&P 500 Price Forecast – Stock Markets Rally To Kickoff Week

The S&P 500 has rallied rather significantly during the trading session on Monday, reaching towards the 2600 level. At this point, the market is very likely to run into a significant amount of resistance. Ultimately, if the market were to break above the 2650 handle, then it opens up a move towards the 2750 level, and then possibly even the 2850 level. That being said, keep in mind that stock markets are forward-looking, and therefore even though we are still in the midst of a major problem, the S&P 500 is rallying based upon the idea of lower coronavirus deaths. The fact that New York City and Italy both have seen less death over the previous 24 hours suggests that the pandemic may be slowing down. That being said though, it’s very unlikely that we simply take off to the upside.

S&P 500 Video 07.04.20

The size of the candlestick is of course impressive, but at the end of the day we are still far below are we had previously started out. We are testing the 38.2% Fibonacci retracement level, and that of course is an area that will attract enough attention by itself. Even if we do break out from here it’s very likely that the 50% Fibonacci retracement level, right around the 2800 level, should attract a certain amount of attention. With that in mind, we may get a short-term bursts, but I still believe there is another leg lower to at least test the bottom to make sure that it has held. At this point, it’s very likely that the market will continue its erratic and violent behavior.