S&P 500 Price Forecast – Stock markets roll over on Monday

The S&P 500 broke down a bit during the early hours in the United States, after initial enthusiasm in the Globex markets. At this point, it looks like we are going to go lower to look for support, and therefore a buying opportunity should present itself closer to the 2775 handle. If we were to break down below there, the market probably goes lower in general. A breakdown below that level could offer a move down to the 200 day EMA, sitting just above the 2700 level.

S&P 500 Video 05.03.19

If we do rally above the highs for the session, it’s very likely that we could go much higher, and perhaps finally break out to reach towards the 2900 level. Looking at this chart, although things have gotten rather negative during early trading on Monday, the reality is that the buyers continue to come back and pick up value. One thing you should pay attention to is the fact that we are starting to get close to a “golden cross”, meaning that the 50 day EMA is getting ready to cross the 200 day EMA. That being the case, it’s very likely that the longer-term traders will start to jump in as well.

Overall, I think you are going to continue to see a lot of choppiness and noise in this market, so a lot of back and forth trading with a bit of an upward bias probably continues to be the case here. That being said, this is a dangerous market right now.

Please let us know what you think in the comments below