S&P 500 Price Forecast – stock markets take another plunge on Friday

The S&P 500 continues to drift lower, as the market has completely given it out. The Santa Claus rally never came, and quite frankly it looks like more brutality and carnage is coming down the road. I think that the 2600 level above is a previous support level, and it should now be resistance. Overall, I think that rallies should be faded and sold on signs of exhaustion, because quite frankly there’s no reason to believe this market is going to change its tune.

S&P 500 Video 24.12.18

The 2400 level underneath will be supportive due to the fact that the previous consolidation area was 200 points tall, which measured for a move down to 2400 once we broke down below 2600. However, that’s just an initial target and there’s nothing to keep this market from falling lower. I would like the idea of rallies showing signs of exhaustion that I can start shorting, because it’s with the massive trend that we have seen lately. If we did break above the 2600 level, and stayed above there on a daily close, it’s very likely that we could go higher. However, we need a catalyst for stocks to rally.

There are far too many issues out there including the US/China trade issue, Brexit, the Federal Reserve raising interest rates, and several other scenarios that continue to cause this market to struggle. I think rallies will continue to offer plenty of opportunities, and that money won’t be coming back into this market until after the holidays, probably even later than that.