S&P 500 Price Forecast – Stock markets stall on Monday

The S&P 500 has rallied a bit during the trading session on Monday but has failed to hang onto the gains. At this point, this doesn’t necessarily mean that I think that we should be selling, I just believe that we are probably going to get an opportunity to buy the S&P 500 at a lower level. The most obvious candidate for support is the 3000 handle, as it was significant resistance previously and of course there is a certain amount of psychological importance to that number.

S&P 500 Video 16.07.19

If we were to break down below the 3000 handle, that’s not necessarily reason to start selling either, I think as long as we stay above the 2950 level, an area that featured resistance previously and also has a gap that should offer support. We bounced off of that area to form a hammer five days ago, and as you can see have reached higher since then. Ultimately though I think we need to pullback to find enough buyers that have missed out the rally. This is a market that is obviously a very longer-term uptrend, so I don’t like trying to fight that move.

However, if we did break down below the 2950 handle, then we could drop down towards the 50 day EMA which is pictured in red on the chart. The 2900 level underneath could cause significant support as well, but quite frankly I think if we blow through the gap at the 2950 level it could be the first signs of serious trouble.

Please let us know what you think in the comments below