S&P 500 Price Forecast – stock markets taking a hit on Friday

At this point, the stock markets look horrible. We have sliced through the 61.8% Fibonacci retracement level, formed an inverted hammer, and then broke down below the bottom of it. That being the case, it looks as if the market is going to go to the 2600 level, perhaps even the 100% Fibonacci retracement level at the 2550 handle. I simply do not trust this market, and I think that rallies in general are going to be selling opportunities in the meantime. That doesn’t mean that there will be value hunters eventually, but quite frankly the market need some type of confidence to get going to the upside.

One of the biggest concern is raising interest rates, and therefore the market has to reprice “risk free capital.” I think a lot of this is about the Federal Reserve, and of course technology stocks getting hammered. That puts a lot of fear into the market because the darlings of the hedge fund world are suddenly taking massive losses, which have been an outsized portion of the gains for far too long. The underlying fundamentals of the market have been weak for some time, and you can see the fruits of this reality. I sell exhaustion on short-term rallies in the meantime, but I will be keeping an eye on the large, round, psychologically significant numbers for potential longer-term buying opportunities.

S&P 500 Video 29.10.18