S&P 500 Price Forecast – stocks have a rough start to the week

The S&P 500 broke down during the trading session on Tuesday, as 2910 was far too much to continue the uptrend. At this point, it looks as if the 2890 level is offering support, but quite frankly I think there’s even more support at the 2880 handle, so I would not be surprised at all to see this market break down to that level at the very least.

Perhaps it is concern about the US dollar, perhaps it is trade war fears, or perhaps it’s just simply the fact that the Federal Reserve is pulling liquidity out of the market, but something clearly has this market spooked. Longer-term from a technical analysis perspective, it still looks bullish but obviously we have ourselves in a bit of a correction phase, and that is a good thing longer-term. I’m looking for value at lower levels, which I think we will see over the next couple of days. With that being the case, I’m looking for some type of supportive daily candle to start buying. As far as selling is concerned, I wouldn’t do that right now, because although there are short-term trades to be had, quite frankly it’s easier to go with the overall trend and much less dangerous. Ultimately, I still think we go looking towards the 3000 level, but we need some type of positive headlines, or at least a lack of -ones to push this market higher.

S&P 500 Video 05.09.18