S&P 500 Price Forecast – Stocks rally into resistance again

The S&P 500 rallied during the trading session early on Wednesday, to fill the gap from the Tuesday open, which of course is a technical standard. At this point though, the question is whether or not we can hang onto these gains. I do not suspect that we will be able to but have to follow the charts regardless. Currently, it looks like the 2950 level is the gateway to much higher pricing. With the jobs number coming out on Friday, I think it’s going to be difficult to break out between now and then. Quite frankly, you would have to have central bank officials talking about easing monetary policy between now and then to get the markets excited. Remember, the S&P 500 has absolutely nothing to do with the economy in the United States but rather whether or not money will be cheap.

S&P 500 Video 05.09.19

With that being the case, I look at this as a consolidating market between the 2950 level and the 2800 level underneath. All things being equal I anticipate that we will probably get a bit of a pullback between now and Friday, and then once the announcement comes out it’s almost anybody’s guess as to where we go next. As long as we stay in this range I have to assume that we continue the consolidation. If we do break out of it, the next move will dictate where my target is. On a breakout to the upside I would be aiming for the 3050 level, and on a break down below the 2800 level I would be aiming for 2700. Until then, it’s simple back and forth trading.

Please let us know what you think in the comments below