S&P 500 Price Forecast March 26, 2018, Technical Analysis

The S&P 500 fell a bit during the trading session on Friday, reaching down towards the 2600 level, an area that should be supportive based upon the recent pullback. This is a market that has struggled a bit as of late, as we have fears of a trade war as you know. This obviously would be bad for equity markets, but so far, the tariffs that both the United States and China have levied on each other have been relatively minor. I think at this point, traders are starting to question whether this is in a bit overdone. It’ll be interesting to see how the next couple of sessions pan out, and with the weekend coming up it’s very difficult to guess as to how the open for the week is going to be. After all, over the weekend we could get cooler heads prevailing, but we could just as easily have negativity come into the conversation, which obviously would have its own effect on the market.

S&P 500 Video 26.03.18

At this point, I assume that the 2600 level will hold as support, but obviously it wouldn’t take much to scare the market and send it much lower. More tariffs of course would do the trick, but I think we are seeing the market question some of the validity of the longer-term outlook of a trade war, so I suspect that if it’s a quiet weekend, we may get a bit of a bounce over the next several sessions.