S&P 500 Price Forecast – trade war fears continue to weigh upon stocks

The S&P 500, although in and uptrend, is struggling as of late because of the US and Chinese tariffs that are being launched upon each other. I believe that the overall attitude of the market is one that wants to go higher, but it’s very difficult to get excited as people don’t know which shoe is going to fall next. Because of this, it’s likely that the overall attitude of participants will continue to wax and wane due to headlines, so be aware of this when trading the S&P 500.

If we do break down below the 2750 handle, the market will probably go looking towards the 2725 level, followed very quickly by the 2700 level which should be even more supportive than the other two levels. Otherwise, I think that if we get a bit of good news, the market will start to look towards the 2800 level above, as it is a significant resistance barrier, and of course a psychologically important level. A clearance of the 2800 level could bring in fresh buyers to the market. I think that the S&P 500 will continue to trade upon headlines coming out of both Beijing and Washington, and probably a lot less on fundamental issues beyond the Federal Reserve. Higher interest rates of course could be a drag on stocks, but at the end of the day it also suggests that perhaps the economy is going quite well in America.

S&P 500 Video 19.06.18