S&P 500 Price Forecast – stock markets run into resistanceThe S&P 500 rallied slightly during the trading session on Tuesday, as we are starting to approach a major resistance barrier. At this point, the market has a lot of work ahead of itself if it wants to continue going higher.
The S&P 500 has rallied slightly during the trading session on Tuesday, but we are getting relatively close to the 2800 level, an area that has been massive resistance as of late. A simple sign of exhaustion should send this market lower, perhaps reaching towards the 2750 handle, and perhaps down to the 2700 level after that. It is difficult to break above this area, but the fact that it has been a bit of a “triple top” previously should keep that intact. However, if we do break above this area, things change rapidly.
S&P 500 Video 20.02.19
I find it very interesting that we have the US/China trade talks going on this week, which of course will have a massive influence as to where we go next. Ultimately, the next couple of candles will probably be crucial for a bigger move. Above the 2820 handle, the market is free to go higher but obviously we are getting a bit stretched at this point, so a pullback makes a lot of sense. If we get sufficiently disappointing comment out of either the Americans and/or the Chinese, that will probably send this market straight back down. We also have the Monetary Policy Meeting Minutes coming out, from the Federal Reserve. That of course will have an influence on where this market goes next as well.
There are two major things driving this market higher, hope and optimism on the US/China deal, and of course the Federal Reserve being easy. If those start to falter, look out below.
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