S&P 500 Price Forecast – talks of new China talks with the marketThe S&P 500 was initially very negative during the trading session on Wednesday but got a surprise announcement that the United States and China were looking to extend talks going forward. This of course lifted the market, but it seems to have lifted it right into resistance. At this point, I think that the uptrend may continue, but we have some work to do.
The S&P 500 initially drifted lower during the trading session on Wednesday, but then shot up in the air as it looks like the United States and China are going to have further talks with higher level officials, having people trying to jump in the market to the upside on good news. There is a significant amount of resistance above though, especially near the 2900 level. If we can break above that level, then we are free to go much higher but obviously this is a market that continues to be very difficult and choppy. It’s very challenging to say the least, but now it looks as if the 2880 handle underneath should offer massive support.
If we broke down below that level, we would probably have to “reset” at the 2870 handle. I think at this point, is very likely that the market will continue to be very noisy, but I think that the longer-term upward proclivity will take over eventually. Pullbacks could be buying opportunities, but right now we have a lot of work ahead of us. The pop has been rather impressive, but at this point it has been simply a regain of the losses that we had suffered. Ultimately, I think that we have tough days ahead of us but I could make an argument for a bit of a cup with handle pattern.