S&P 500 Price Forecast – the S&P 500 slams into resistanceThe S&P 500 rallied rather significantly after initially dipping on Tuesday, reaching towards the 2900 level above. That’s an area that has previously been important more than once, so it’s not a surprise that we pulled back a little bit from this level.
The S&P 500 has tried to rally significantly during the trading session after selling off on Wednesday but it also has found the 2900 level to bring in a lot of pressure. If we can break above the 2900 level, it’s likely that the market continues to go much higher, probably initially attacking the 2915 handle, and then the 2920 level. Alternately, we could pull back and try to build up a bit of momentum to finally make the breakout. Otherwise, if we break down through the lows of the last couple of days, that could signal a further correction in the S&P 500. Keep in mind that there are a lot of moving pieces out there right now, and this of course will spook a lot of traders when it comes to trading equities markets and of course futures markets. With that being the case, I anticipate that we will eventually see more negativity in the short term, perhaps followed by some type of breakout. It’s going to take a lot of wherewithal, and quite frankly I would be very cautious about my position size in this type of environment.
I do break down, we could be looking at the 2850 level before you know it. Because of this, keep your position size small but if we do get the melt down, it will be fast and brutal as these things typically are when you break a major trendline in the futures markets for equities.