S&P 500 Price Forecast – Stock Markets Tried To Recover

The S&P 500 has been very noisy during the trading session on Monday, as we continue to bounce around the 3000 handle. This is a market that continues to see a lot of negativity, and therefore it is probably going to be very difficult to trade over the next several sessions. Remember, we are taking a close look at the coronavirus situation and that of course continues to move the markets around. However, it now looks as if Wall Street is demanding a 75 bps cut during the month of March, and they may very well get it. If that’s going to be the case, then it’s likely that stocks will recover because the only thing they truly have cared about for the last decade or, so it has been liquidity. If that’s maintained, nobody cares about anything else.

S&P 500 Video 03.03.20

Having said that, it’s difficult to trade in an environment that features so much in the way of uncertainty. If that’s going to be the case, then it’s very likely that we see this market continue to show plenty of negativity and concerns as there simply is nothing to hang your hat on right now. About the only thing that you can look at is the fact that the market is testing that the 3000 level. If we can stay above the 3000 level, then it’s very likely that this market will continue to go higher, perhaps taking on the 200 day EMA and then the 50 day EMA. If the market was to turn around and breakdown below the lows of Friday, the 2800 level will not only be tested bit more than likely violated to the downside as the market collapses.