S&P 500 Price Forecast – US stock markets rally after jobs number

The S&P 500 has broken to the upside, but still face a significant resistance just above. The market participants have been sellers recently, so at this point I think that the markets will probably face a tough uphill climb. At this point, I think you are probably still looking at a scenario where you can sell the rallies, but if we can clear the 2900 level, that would bode well for the longer-term outlook of the market. I think there are a lot of moving pieces right now, and the recent volatility shows just how difficult things have been.

Trade tensions between the United States and China continue to plug market, just as the crisis in the emerging markets are. It seems as if a lot of people are ignoring a lot of big problems, but the charts don’t lie, we have been grinding lower. At this point, I expect the 2890 level to be difficult to overcome, at least in the short term. The 2900 level courses much more important. If we break down below the lows of the Friday session, then we will go looking towards 2850, and then eventually 2800 after that. It’s very difficult to trade this market for more than a bounce or a pullback, so be quick to take profits in this type of environment. Even though things have perked up a bit on Friday, the reality is that the market is still fraught with plenty of dangers.

S&P 500 Video 10.09.18