S&P 500 Price Forecast – Stock Markets Recover Slightly on Wednesday

The S&P 500 has rallied a bit during the trading session on Wednesday, reaching towards the 50 day EMA during what has been a little bit in the way of quiet trading. Ultimately, the 50 day EMA has gone flat, so at this point I think it is highly likely that we have seen the top of the range for the time being. I think what we are likely to see is a continued “fading the rallies” type of scenario in this market. Because of this, I am very suspicious of days like Wednesday and look at them as opportunities to get short yet again. After all, the market has been hammered due to the coronavirus slowdown and the fact that we have a very murky picture ahead of us when it comes to global growth.

S&P 500 Video 23.04.20

Furthermore, we are starting to see places like Singapore get more infections as they open up, so quite frankly I think that the coronavirus situation is one that will continue to be an issue, even when we are given the “all clear.” In fact, it is not until we get some type of vaccine order situation like that where we would be able to see this market have more of a sustained rally. We are nowhere near that, so at this point in time it’s likely that the market will continue to see sellers into the rallies, and therefore it’s likely that the real money is made on the short side, but in short bursts, not some type of massive move.