S&P 500 Price Forecast – traders hold their breathThe S&P 500 has continued to grind back and forth during the trading session on Monday as we are still very concerned about a lot of moving pieces. That being the case, it’s likely that we will eventually get a move, and as you can see on the attached chart, I have a triangle drawn.
The S&P 500 has gone sideways over the last several hours, as we continue to see a lot of congestion. The 2750 level is an area that has attracted a lot of attention, and I think if we can break above the downtrend line of the symmetrical triangle I have plotted, we probably go looking towards the 2800 level. Alternately, if we break down below the uptrend line, at the 2750 level, then I think that the market is probably going to break down to the 2700 level which has been the scene of a lot of support. I think there are a lot of moving pieces right now, and quite frankly it is not surprising that we don’t know which direction to go right now, because there are fears about the trade wars, there are higher interest rates, there are issues with the Brexit, and a whole litany of other problems.
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Looking at this chart, it’s obvious that we will continue to see a lot of noise in the market, and I think that the 2800 level above is a major barrier. However, if we were to break above there then we should go to the 2850 handle after that. Underneath, if we break down below the 2700 level, the market probably drops to 2500 and accelerates to the downside due to some catalyst entering the market, which will be very obvious for those watching the headlines.