S&P 500 Price Forecast – Stock Markets Struggle at 200 Day EMA

The S&P 500 has gone back and forth during the trading session on Monday, showing signs of exhaustion yet again. The 200 day EMA is starting to come into play, and as a result it should show signs of exhaustion. The market pulling back from here makes quite a bit of sense, because we are at such a technically important level. The 200 day EMA of course will be a potential resistance barrier. If we break down below the bottom of the candlestick during the trading session on Monday, then it opens up the door down to the 50 day EMA which is closer to the 2025 handle.

S&P 500 Video 12.05.20

You should also pay attention to the fact that the 61.8% Fibonacci retracement level is in the same area, and therefore it is likely that we are going to see more pressure in that area again. In fact, it almost looks as if we are making a “lower high”, and if that is in fact going to be the case then this could be an ominous sign for markets overall. With that, I would be a seller of a market that is running out of momentum. I have no interest in trying to buy this market until we break above the 3000 level as we are a bit overextended. With this, it is a market that I think is probably at best going to chop around in this general vicinity. Ultimately, if we do pull back from here, we could see a rather significant move lower.