S&P 500 Price Forecast – Stock markets struggle on rally

The S&P 500 tried to rally during the trading session on Tuesday, reaching towards the highs again, but then turned around to form a bit of a shooting star midday. At this point, we are in a massive uptrend but obviously it’s likely that we need to build up a bit of momentum.
Christopher Lewis
S&P 500 daily chart, April 17, 2019

The S&P 500 initially tried to rally during the trading session on Tuesday but gave back quite a bit of the gains to form signs of exhaustion. The 2900 level underneath of course is going to be supportive, just as the 2880 level underneath will be supportive. At this point in time I like the idea of buying dips as it gives us an opportunity to pick up value. Overall, it’s very likely that the market will continue to find plenty of reasons to go long.

S&P 500 Video 17.04.19

We are in the middle of earnings season so that of course will cause a lot of volatility in this market, as they can change the overall outlook of stocks for the day, perhaps even for the week. Overall, it’s very likely that we will continue to see value hunting though, because that’s the way it’s been for some time. If we break out to the upside and break the top of the shooting star shaped candle, then we could go looking towards the 3000 level as it is a large, round, psychologically significant figure. That level will cause a lot of noise, as those round numbers tend to.

If we did break down below the 2880 handle, then we may have to “reset” closer to the 2850 level, possibly even the 2790 level where I believe that the bottom of the uptrend currently is. A breakdown below that level has me rethinking the entire situation.

Please let us know what you think in the comments below

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