S&P 500 Price Forecast – Stock Markets Take Massive Head on Monday

The S&P 500 broke down rather significantly during the trading session on Monday, testing a major uptrend line and now it looks as if the market is starting to ask some serious questions about whether or not the coronavirus situation is going to be a bigger problem. The 3200 level underneath would be a major breach of support, and if the market breaks down below there it’s very likely that the S&P 500 goes down to the 200 day EMA. At this point, it’s not necessarily market that you can jump into and start selling right now, but if we break down below the 3200 level things will get rather ugly rather quick.

S&P 500 Video 25.02.20

To the upside, the market could go try to fill that gap, but I would not be a buyer until it does so. Short-term traders may try to play the bounce in the attempted gap fill, but you will need to be very cautious and be willing to pay attention to the market during the entire process. The 50 day EMA has been violated, so if we were to break back above there, that offers a little bit more to hang your hat on as far as filling the gap is concerned. The 3400 level has offered a significant resistance barrier, but ultimately, I think that the market will try to break above there as soon as we get the “all clear” when it comes to the virus, something that may take longer than a lot of investors have bet on.