S&P 500 Price Forecast – Indices Grind Higher in Holiday Trading
The S&P 500 rallied a bit during the trading session on Monday, which of course was Memorial Day so therefore a lot of the liquidity would have been gone, so having said that it is likely that the move cannot quite be trusted.
Ultimately, the 3000 level above is going to offer a significant amount of resistance, but it is obvious that stock market traders are completely disconnected from economic reality. Part of what they are focusing on it seems as of late is going to be the infection rate, which does seem to be getting a little bit better as one would anticipate. Having said that, with 36 million Americans recently unemployed, one would have to think that it is only a matter of time before the reality comes back into play.
S&P 500 Video 26.05.20
To the downside, the 2800 level looks to be massive support, so will have to wait, and see whether or not that gets tested. Nonetheless, the markets have been completely disconnected from reality for quite some time, so it is highly likely that we will eventually see some type of reaction.
Having said that, the market does break above the 3000 level it is likely that 3100 gets targeted. After that, then will go looking towards the all-time highs yet again. That is a bit surprising, but one thing that should be noted is that volume has been dropping this entire rallies so I would be cautious about that. Furthermore, keep in mind that the holiday candlestick cannot really be trusted as it will almost certainly be all retail traders and not necessarily “smart money.”
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This article was originally posted on FX Empire
