S&P 500 Price Forecast – Stock Markets Undulate After AttackStock markets fell pretty hard during the open on Friday but have also recovered quite nicely as people are starting to come to terms with the US attack on an Iranian general.
That being said, this is a very bullish looking candlestick considering what has happened. There was a major selloff due to the Americans killing the Iranian general, but we have recovered quite nicely which is a bit surprising considering that you would think this would absolutely wipe out risk appetite. That being said, perhaps the market simply isn’t willing to fall and if that’s the case you can’t argue with the momentum. With this being the case, it looks as if the 3200 level is holding quite nicely, and the turnaround has been quite drastic.
S&P 500 Video 06.01.20
It should also be noted that most of the selling was done by either Asian or European traders, and the Americans simply turned around and bought everything back. That is when the true volume comes into the futures markets, when Chicago gets involved. Because of this, it shows that we still have plenty of bullish momentum and traders out there willing to buy dips going forward. If we break down below the 3200 level, then it’s likely that the 3150 level would also come into play. Because of this I like the idea of buying this market on short-term pullbacks, especially after what we have seen on Friday. It’s very likely that we are going to go looking towards the 3500 level given enough time, but we may need to go back and forth a bit in order to build up the necessary momentum. In the meantime, it’s all about looking for value and these dips certainly will offer that value for traders who are willing to wait.