S&P 500 Price forecast for the week of March 26, 2018, Technical Analysis

The S&P 500 broke down significantly during the week, reaching down towards the 2600 level. This area has been supported in the past, and I think it will continue to be support if all things remain equal. However, we have a lot of concerns when it comes to talking about the trade agreements between the United States and China, and of course fresh, new tariffs. If this weekend is relatively quiet, then we may get a bit of a bounce as this is a natural place for traders come back in. I would point out that a lot of my friends on Wall Street have suggested that even though we have sold off rather drastically, volume has not been strong, suggesting that perhaps this isn’t as bad as it looks.

S&P 500 Video 26.03.18

If we were to somehow slice through the 2600 level on bad news, and more importantly the 2500 level, I think at that point the market breaks down rather significantly and we enter a bear market rather drastically. I believe that we will eventually see buyers come back, they always do, but we need to get past this noise between the Chinese and the Americans. I believe at this point, the market is moving purely on emotion, and is ignoring a lot of other factors. Eventually, with earnings being as good as they have been, I think this market does rally.