S&P 500 Price Forecast – Stock markets stagnate

The S&P 500 initially tried to rally during the trading session on Wednesday but gave back quite a bit of the gains as the markets are running into a bit of exhaustion. We are at lofty levels, so it’s not a huge surprise to see that we might struggle. The 2800 level has been a magnet for price, as well as resistance in general. However, when I look at the longer-term charts, you can see that the 2800 level has been rather difficult to crack. However, recently we have hung out in this area quite a bit longer than we did previously, so this means one of two things: either we will eventually break out to the upside, or a pull back from here will be much more shallow than it has been in the past.

S&P 500 Video 07.03.19

Looking at this chart, you can see that there has been quite a bit of interest near the 2775 handle, and the 2750 level. Ultimately there should be buyers underneath, but we may be looking to write it out between now and the nonfarm payroll numbers on Friday. If that’s the case, you are looking at micro-movements more than anything else. A big move is probably going to need some type of catalyst, such as an agreement between the Americans and the Chinese, something that seems to be becoming more likely, but the question is whether or not that market event will be a “sell the news” situation, or if it will lead to the next leg higher. I suppose it all comes down to what’s in the deal. Either way, in the short term I suspect we will see a lot of back-and-forth.

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