S&P 500 Price Forecast – Stock Markets Run Into Brick Wall

The S&P 500 looks very stretched at this point, as it had initially gone all the way up to 3030 before selling off again. The market then broke down below the 3000 level again, which of course is an extremely negative sign. With that in mind, I like the idea of fading short-term rallies, because obviously we are starting to run into a significant amount of noise. I think at this point what we are looking at is a market that is ready to give up some of the gains, as 3000 seems to be a major battleground.

S&P 500 Video 28.05.20

Having said that, we need to get above the 3100 level to have comfortable sailing to the upside. I think at this point we are likely to see a lot of noise but I think what you can also expect is the fact that perhaps the US/China trade war picking up could come back into play, and that is something worth paying attention to. With all this being said, it is likely that we will see a lot of noisy trading at this point, as the market is facing a major barrier of noise.

Quite frankly, a lot of traders who have bought this market down near the 2400 level are quite happy to sell it here as we are running into trouble 500 points later. It is not that we cannot break out to the upside, it is just that there was major selling pressure in this general vicinity previously, and market memory dictates that we will be paying attention to it.

For a look at all of today’s economic events, check out our economic calendar.