S&P 500 Price Forecast – stock markets slightly positive on Tuesday

The S&P 500 bounced a bit during the day on Tuesday, as the 2800 level continues offer significant support. I believe at this point, we are going back and forth between the 2800 level and the 2820 level. The market looks very trapped, but that makes sense as we have so many central banks and announcements in the headlines over the next several days. · FX Empire

Christopher Lewis

Updated Tue, Jul 31, 2018, 10:47 PM

The S&P 500 has been very volatile during trading on Tuesday, trying to reach towards the 2820 level that failing so far. In general, I think the market remains somewhat range bound in a 20 point area as there is so much in the way of central-bank noise out there as well as economic announcements over the next few days to contend with. I believe that the recent selloff and Facebook will continue to keep some equities traders a bit spooked, and it’s almost impossible to imagine a scenario where one of the darlings of Wall Street gets slaughtered without some type of collateral damage. In the short run, I think the market is starting to look a little bit week, but I am the first person to start buying if we can break above the 2820 handle.

The alternate scenario is that we break down, but I don’t consider this area broken down through until we clear the 2790 level. Once we do, I believe that the S&P 500 goes much lower, perhaps reaching as low as the 2740 level. Ultimately, I believe that the market will continue to be very noisy, so course we will have to be very cautious about putting too much into it in one shot. I think we are range bound in the short term, but certainly looking a bit soft overall.