S&P 500 Price Forecast – stock markets teeterStock markets continue to teeter overall, as they are pressing major support level. Currently, the S&P 500 finds itself hanging on by its fingernails to consolidation that we have been involved with for some time.
As I record this video, the day has been rather rough already for S&P 500 traders. The futures contracts are hanging about the 2600 level, an area that is of course of vital importance due to not only the large come around, psychologically significant figure, but also the fact that it is at the very bottom of a major consolidation area going back months. If we do break down and continue to grind lower from here, it could open the door for a 200 point move. However, I also recognize that if we can break to the upside with any type of good news, this market could take off rather quickly.
S&P 500 Video 18.12.18
So the first question you will probably be asking is “when will this decision be made?” I suspect that Wednesday we will get some type of decision. I think that if the statement after the interest rate hike on Wednesday will be crucial as to where we go next. I think overall we are looking at a scenario that is going to be difficult to suss out between now and then, and therefore I think we are more than likely going to have a choppy couple of days, and then a sudden burst in one direction or the other. If we break down lower, we could be looking at a move down to the 2400 level, but if we get a strong move to the upside, we could see this market reach towards the 2700 level, perhaps even the 50 day EMA. Between now and then, you are probably best to stay away.