S&P 500 Price Forecast – Stock Markets Run Into Resistance

The S&P 500 has gone back and forth during the trading session on Tuesday, as the market has reached the 200 day EMA. The market broke above there, but then turned around to show signs of exhaustion. At this point in time, the market doesn’t really know what to do as the Federal Reserve has cut interest rates by 50 bps and therefore it’s likely that markets are trying to rally based upon that but quite frankly what does it interest-rate cut do to a situation where the coronavirus rages? The answer of course is nothing.

S&P 500 Video 04.03.20

With this, it looks like we are likely a rollover and if the market breaks down below the 3000 handle, we could go much lower. The significant bounce during the previous session of course was impressive, but it doesn’t look very likely to change the entirety of the market, because as impressive as I candlestick was, it didn’t break above the 200 day EMA and stay above it, and of course the market had broken down much further than that simple candlestick wipes out. Looking at this chart, it’s likely that we revisit the 2900 level. A breakdown below that level could open up the “trapdoor” for a much lower level. Alternately, if we do manage to break above the highs from the trading session on Tuesday then that changes everything as we go looking towards the 50 day EMA. Ultimately though, it certainly looks rather bleak as I record this.