S&P 500 Price Forecast – S&P 500 noisy and slightly negative to start week
The S&P 500 fell a bit to start the week on Monday, as the trade war continues to loom large. The rectangle that I have on the chart to find the current trading range, with the 2700 level below being a bit of a support level. I think that the market will probably continue to struggle in general though, so I believe that we will stay within this rectangle over the next several days, at least until we get some type of gauge as to what the Chinese will do in retaliation.
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If we were to break down to a fresh, new low, then I think the S&P 500 probably goes down to the 2650 handle, perhaps even 2600 after that. Overall, I think that the 2740 level continues offer significant resistance above, so if we do rally I would be quick to take profits before that level. I think that range bound trading is probably about as good as this market gets over the next couple of days, and you should keep in mind that Independence Day is Wednesday, so of course volume will be very thin in this market. Because of this, I think that you may be better served staying away, but a fresh, new low is obviously a very negative sign and could be taken advantage of. Otherwise, you are looking at range bound, and choppy trading based upon headlines more than anything else.