S&P 500 Price Forecast – Stock markets have wild ride lower

The S&P 500 broke down rather significantly during the trading session on Monday, and it looks like the 200 day EMA is starting to come into effect the market. Beyond that, we also got the 61.8% Fibonacci retracement level underneath that could offer a bit of support. At this point, the market looks very unlikely to just slice rate through this area, but if it does it could be extraordinarily negative.

S&P 500 Video 06.08.19

The 2850 level of course is a large, round, psychologically significant figure, and of course the 61 1.8% Fibonacci retracement level. Overall, I think that the market is getting a bit oversold, so at this point I think that were probably going to see a bit of a bounce. That being the case though, I think that the market is probably going to be very noisy, and I don’t necessarily think that we are going to see a shot straight to the upside.

If we break down below the 2850 handle though, that unleashes a massive amount of selling, and my belief is that if we can close below the 61.8% Fibonacci retracement level, it’s very possible that we could see a move down to the 100% Fibonacci retracement level which is closer to the 2735 region. That being said, I think it would take some type of shock to the marketplace. We are starting to see people come to grips with the idea that the Americans and the Chinese aren’t anywhere near some type of trade agreement, so it’s possible that we will continue to see volatility pick up. A bounce is possible, that’s fine, but I also recognize that the upside is somewhat limited, perhaps to the 50 day EMA.

Please let us know what you think in the comments below