S&P 500 Price Forecast – stock markets turn around sell off to end the weekThe S&P 500 initially fell during trading on Friday but turned around to bounce off of the major uptrend line at the 2910 level and rally above the 2920 level. As I record this though, it looks like we are seeing more chopped than anything else.
The S&P 500 initially fell to the 2910 level, before finding enough support to turn around and break above the 2920 handle. Furthermore, I think that there is resistance at the 2930 level though, so if we can break above there I think that this market will go much higher. As I record this there are signs of a bit of a pullback, so I think the market is essentially settling in on the 2920 region for the end of the week. If we can break above 2930, the market then goes looking towards 2940 and then 2950 respectively.
A break down below the 2910 level opens the door to 2900, which I see as crucial. If we were to break down below there I would become concerned about the overall uptrend, but it seems as if the stock markets are extraordinarily resilient in the face of so much adversity. I think that continues to be the case and I don’t see any reason why that would change in the short term. That doesn’t mean it will be volatile, but I think that every 10 points or so you’re going to see both support and resistance enter the picture. Place short-term bounces and short-term pullbacks and do so in small increments until the market can make up its collective mind. Expect a lot of reaction to the value of the US dollar as per usual, so pay attention to that as well.