S&P 500 Price Forecast – Wall Street starts out with positive tone for the week

The S&P 500 kicked off the session on Monday showing signs of strength, breaking to another high, as we continue to see money flow into the index. Pullbacks at this point should continue to find plenty of support, especially near the psychologically important 2800 level. After all, traders like large, round, psychologically significant figures, which of course 2800 has been as of late. I do like the idea of buying pullbacks as we continue to grind higher and towards the 2900 level above, which has been a scene of massive selling.

S&P 500 Video 19.03.19

The markets have been nervous the entire way up, and now we are starting to hear more and more people talking about how we are going to break down. That being said, even though the move to the upside has been rather aggressive, the sellers have been wrong at every step of the way. Because of this, you simply have to follow the trend regardless of what you believe the economy is doing.

Simply put, at this point it looks as if the 2800 level will continue to offer support while the 2900 level above could be rather significant resistance. A short-term pullback could come, but quite frankly I think most people are going to be looking at that as a potential value play considered everything that has happened as of late. If we do get that pullback, somewhere around 2800 I would expect a lot of money flow coming into the market, meaning that we won’t be able to break down below there for any significant amount of time.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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