S&P 500 Price Forecast – stock markets continue to look soft
The S&P 500 drifted a bit lower to kick off the day, but it seems as if the 2725 level is offering a bit of minor support, so it’s possible that we may get a bit of a bounce from here. The 2700 level underneath is crucial and we have made a potential “higher low”, but we will have to wait and see how this plays out. At this point, I would not put too much into the S&P 500, because I think quite frankly the markets are in “sell first and ask later” mode. If we break down below the 2700 level, the market could unwind at that point, breaking down rather significantly. Either way, I do like the idea of buying longer term, but we need some stability in order to be able to do so. Quite frankly, it looks as if the market doesn’t know what to do at this point.
Your capital is at risk
What does have me concerned is that interest rates are rising and the market is acting the way it is because of it. Quite frankly, this should not be a surprise to market participants so it is a bit disconcerting that they are so nervous about it. The 2750 level is broken to the upside would be a very bullish sign, and at that point, I’d be willing to put a bit of money to work, but until then I think it’s just simply far too volatile to risk your trading capital as we have no clear catalyst to go higher.