S&P 500 Weekly Forecast – Stock Markets Have Explosive Week

S&P 500 Weekly Forecast Video for 06.11.23

S&P 500 Weekly Technical Analysis

The S&P 500 has rallied rather significantly during the course of the week, wiping out several other candlesticks. At this point, if we were to break above the top of the last couple of candlesticks, then I think you have the possibility of rallying toward the 4600 level. The candlestick is most certainly a massively bullish one, so we may have a short term rally just waiting to happen. Whether or not we get that remains to be seen, but we could go as high as 4600 between now and the end of the year.

If we were to turn around and take out the bottom of this candle, that would be horrifically negative, and it could send this market much lower. In that area, we have the 61.8% Fibonacci level, which then opens up the possibility of a move to the 4000 level. I don’t think that happens anytime soon, but at this point I think this is a situation where we have a lot of volatility just waiting to happen, therefore you need to be very cautious with the idea of trying to put too much money into this market, but I think you also have to look at this through the prism of volatility, meaning that you need to keep your position size reasonable.

With all this being said, it does look like we’re trying to lean to the upside, but we need to break above those candlesticks from 2 weeks before to get bullish. If not, then we may just continue to trade back and forth in this channel that has been so important for some time. All things being equal, this is a market that the outlook for the Federal Reserve will continue to be the only thing that matters, and of course the weak jobs number has people looking for loose monetary policy.

For a look at all of today’s economic events, check out our economic calendar.