S&P 500 Price Forecast – stock markets drift lower to kick off the week

The S&P 500 fell during the Monday session, reaching towards the 2900 level almost immediately. At this point, it’s very likely that the market is going to continue to drift a little bit lower, but I do think there are significant support levels underneath. · FX Empire

Christopher Lewis

Updated Mon, Sep 17, 2018, 11:03 PM

The S&P 500 gapped lower to kick off the week, came back to fill that gap, and then rolled over again. I believe that the market is a bit concerned when it comes to the trade tariffs, and because of this it’s likely that the market will continue to struggle to rally significantly, as we await to see whether we are going to see another 200 billion in Terrace slapped on the Chinese this week. There are reports that supposedly it’s going to happen, but as I record this it had not happened yet.

Ultimately, we have broken down below a short-term trendline, but I think there is plenty of support at the 2890 handle, and of course the 2880 handle after that. The S&P 500 continues to have plenty of support, and I think that it’s only a matter time before we would find value hunters coming back into this market. In general, this is a market that I think will continue to try to reach towards the 3000 level, but that’s a longer-term target more than anything else, which would probably happen much quicker than we anticipated if we were to get some type of resolution between the Americans and the Chinese, but right now that seems to be a faraway ideal. I do think that we will have the occasional pullback, but there are plenty of areas where buyers are willing to step in as the US economy is outperforming every other one in the world right now.