Yahoo Finance S&P 500 Price Forecast – S&P 500 rallies to kick off the weekend
The S&P 500 has a clear barrier at the 2800 level to overcome if we are going to continue to see bullish pressure. We had seen a nice move early, so now the question is whether or not the buyers get to come back to continue to push higher. On a break above the 2805 level, then I think it could be a little bit more easy to go long. We have obviously seen a lot of technical damage done recently, so it is going to be very tentative going forward. I do think that eventually we go higher, because although there are plenty of reasons to be concerned, the reality is that I think the fear is actually bullish for the market as we continue to see trepidation to the upside, which quite frankly we had gotten far too over exuberant.
However, if we break down below the 2700 level it would be a major drop in the value of this market, and I think it would probably bring on much more destructive selling. When you look at the chart, it’s easy to see that the 2700 level is a major bottom, while the 2800 level is significant resistance. I think we are simply consolidating in this area, trying to wind up enough momentum to break out to the upside. If we do, then I fully anticipate that this market will go much higher. There are a lot of moving pieces out there and of course we continue to trade upon busy headlines so money management is crucial.
This article was originally posted on FX Empire
