S&P 500 Price Forecast – Stock Markets run into Resistance Again

The S&P 500 did pull back a little bit during the trading session on Friday again, but I also recognize that there is a downtrend that has held up now. At this point, there is a significant amount of support underneath as well though, so quite frankly there is a lot of confusion right now.
Christopher Lewis
S&P 500 daily chart, February 11, 2019

The S&P 500 pulled back a bit during the trading session on Friday as we continue to see a lot of trouble. At this point, we have pulled back a bit and what is most important to pay attention to is the fact that the shooting star from the weekly chart has happened right at the 61.8% Fibonacci retracement level. At this point, I do think that we go lower if the political situation doesn’t get better. We are almost assured of a government shutdown rather soon, and of course the US/China trade relations aren’t going anywhere. If that’s going to be the case, stock markets are probably going to take it on the chin.

S&P 500 Video 11.02.19

I would also point out just how low the volume has been on the way out. There was a much more volume attic move to the downside, so you should pay attention to that. If we make a fresh, new high, then we can go higher because it is a break of a shooting star which is a very bullish sign and could send this market looking towards the 2800 level. If we do fall from here, then I think we could go down to the 2600 level, possibly even the 2500 level after that. Overall, I think we are at a major inflection point, so we are about to see the markets make a decision.

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