S&P 500 Weekly Price Forecast – markets plummet for the week

The S&P 500 has fallen rather hard during the week, as we continue to see a lot of volatility in the markets, but it seems as if we are carving out a relatively well-balanced consolidation area. The 2800 level above is significant resistance, just as the 2600 level underneath is significant support. I believe that the market very likely could stay in this range, especially as we get towards the end of the year as people look to balance their books. The market is very range bound over the last couple of months, and I think it’s difficult to imagine a scenario where people are willing to throw a ton of money into the market to break out of this range between now and New Year’s Day. Because of this, it is probably easier to trade this from the shorter-term charts such as the daily charts, perhaps even the hourly chart.

S&P 500 Video 10.12.18

If we do break above the 2800 level, that could send this market to the 2900 level, perhaps even the 3000 level. The alternate scenario is that we break below the 2600 level, and then reached towards the 2500 level. The 2600 level has been rather supportive for some time now, so I think that buying dips probably makes sense. However, if we get some type of escalation between the US and Chinese when it comes to trade noise, that could be the catalyst to break this market apart. Currently though, I think we sit in the same range for the next couple of weeks.