S&P 500 Price Forecast – stock markets show signs of strength again

I think at this point, it’s obvious that the 2600 level is crucial for the S&P 500. If we can continue and go higher than the highs from Tuesday, I think the market probably goes to the 2700, and then the 50 day EMA above. We could even go as high as 2800 but recently all of the burden of proof has been on the buyers, as the market has rolled over time and time again. A softening US dollar has certainly helped the cause during the day on Wednesday, but let’s keep in mind part of this would be short covering in the GBP/USD pair ahead of the Teresa May vote.

S&P 500 Video 13.12.18

I think a short-term trade to the upside is very likely, but I also recognize that once we get closer to say 2750 or so, it’s time to start looking for the exits as the sellers will almost certainly come back. Ultimately, I believe that the market remains volatile and ready to roll over any time there is even the slightest hint of trouble. That will probably be the case between now and the end of the year. With that, I am cautiously optimistic for the next day or so, but after that I’ll be looking for a reason to go short. I don’t know if we break down below the 2600 level, but if we do that of course would be a very negative sign as it would be the second time it’s happened.