S&P 500 Price Forecast – Stock Markets Reel Yet AgainStock markets continue to reel back and forth as the market participants continue to pay attention to the various headwinds to the global economy out there.
The S&P 500 has been very volatile as of late, as the coronavirus continues to stick negative headlines out there for traders to focus on. Furthermore, there has been a lot of concerns when it comes to the lack of fiscal plans coming out of the United States government. Ultimately though, the gap above should continue to offer plenty of resistance, especially near the 2950 handle. Signs of exhaustion should be sold into, as the S&P 500 clearly has no idea how to price the idea of the global economy grinding to a halt.
S&P 500 Video 12.03.20
All of that being said, this is not like 2008. 2008 was the financial crisis, and there were quantifiable figures to work with. In this situation, traders have no idea what’s going to happen next due to the fact that people are not going to gathering crowds. In some parts of the world we are already starting to see people avoid the workplace, because the crowds of course spread the virus. With that being the case it’s difficult to imagine how an economy can grow. As long as that’s going to be the situation, we find ourselves in, it’s difficult to imagine a scenario where the S&P 500 can keep gains without massive fiscal intervention. Until the US government steps up, it’s difficult to imagine this market recovering with any type of resiliency. Afterwards, it will probably continue to cause issues due to the fact that there is no way to price anything at this point. This is one of the biggest issues that the markets face and I think rallies are to be sold into, although I am aware the fact that once we do get a financial package, it’s likely that the market will rally, only to roll right back over.