S & P 500 daily chart, December 04, 2018

S&P 500 Price Forecast – stock markets gapped higher to kick off week

The S&P 500 gapped higher during the day on Monday, reaching towards the 2820 level, an area that has been resistance a couple of times now. We pulled back almost immediately though, so it makes sense that a pullback is probably imminent. Filling the gap is something that we will do in these situations quite often, so I think what’s going to happen as we get a little bit of a fade from here, only to see buyers come back in and pick up value somewhere around 2755 or so.

S&P 500 Video 04.12.18

Otherwise, if we break above the top of the candle stick for the day on Monday, we could break to the upside towards the 2850 handle, possibly even the 2900 level. This of course makes a lot of sense that the market would rally the way we have, as the Americans and the Chinese have chilled out when it comes to the trade war, at least for the time being. Because of this, I think that we could get a bit of a “Santa Claus rally” towards the end of the year, so I do believe that the buyers will return. However, if we close on a daily chart below the 2750 handle, that would be very negative indeed, perhaps sending the market down towards the 2650 handle. That would of course have us back in consolidation. I do believe that the next couple of days will be crucial for the direction of the market for the entirety of December.