S&P 500 Price Forecast – quite session, maybe
The S&P 500 has gone back and forth during the trading session on Thursday, dancing around between the 2750 level on the bottom, and the 2800 level on the top. I think at this point, it’s simply a matter of whether we can break above the resistance or if we break down below the support. Overall, I think that if we can break above that level, the market could go higher to test the previous uptrend line near the 2850 handle. It’s difficult to tell where were going to go yet, but I think using this somewhat neutral candle that has started to form during the day is probably the best way to trade the market.
Your capital is at risk
If we break lower, then I think the initial target will be closer to the 2700 level, and of course you should be paying attention to the bond markets and see what they are doing. If bonds continue to see a lot of money flowing into them, that’s a sign of caution. Higher rates are attracted to traders because it is considered “risk free.” At this point, I think the market just simply needed to reset, and all this has been rather unsettling, but at the end of the day it’s all what you would expect. In general, I think that this market will continue to be very noisy, and geopolitical factors can’t be ignored as well. The question now is whether or not we have finally started to notice the trade tensions as well? Expect a lot of volatility.