S&P 500 Price Forecast – Stock markets stabilize

The S&P 500 has gone back and forth during the trading session on Thursday, as the ISM Nonmanufacturing numbers came out much weaker than anticipated. This obviously has a lot of people worried about recession in the United States, but at the end of the day it’s also a potential reason for the Federal Reserve to step into the market yet again. Beyond that, the Friday session of course will figure in on the jobsite as the Nonfarm Payroll numbers come out, so we should get a lot of volatility.

S&P 500 Video 04.10.19

The uptrend line underneath the 200 day EMA that we are currently testing should offer a significant amount of support as traders will look to defend the overall uptrend. That being said, if the jobs number is horrible we may break down, perhaps trying to get to the 2800 level initially. That being said, the market is very likely to try to find a lot of support in this area, so there is also the possibility of a bit of a “snapback” rally, as traders start to focus more on the Federal Reserve than anything else. The Federal Reserve has shown itself willing to back Wall Street whenever it’s needed, so one would have to think it’s only a matter of time before that psychology comes back into the marketplace. To the upside, the 2940 level is probably the next target that we will be looking for to the upside. On a rally.

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