S&P 500 Price Forecast – Stock Markets Showing Signs of a Relief Rally

The S&P 500 has gapped lower to kick off the trading week, but then turned around a break above the top of the gap and continue going higher. This is an extraordinarily bullish sign, and that should continue to favor an attempt to make a fresh, new high. If we do clear the 2650 level, it’s very likely that this market will continue to go higher. That could open up the door for another 100 point rally, and then possibly even a move towards the 2850 level.

S&P 500 Video 31.03.20

Looking at the other side of the equation, if we were to break down below the lows of the session then I think it opens up the door to the 2400 level, possibly even the 2200 level. Unfortunately, quite often these “bear market rallies” can be vicious, but then turned around almost as quickly as they form. Because of this, it’s very possible that we could see a lot of erratic behavior. That being said, pay attention to the levels mentioned previously, because they will be more or less a guideline as to how to handle this market.

The 50 day EMA is currently sitting at the 2871 level and reaching towards that crucial 2850 handle. Ultimately, this is a market that although has shown some signs of strength as of late, when you look at the totality of the move down from the highs, you can see that we still have a lot of work to do to build up the confidence for a longer-term uptrend.