S&P 500 Weekly Forecast – Stock Markets Threaten Breakout

S&P 500 Weekly Forecast Video for 28.11.22

S&P 500 Weekly Technical Analysis

The S&P 500 E-mini contract has rallied a bit during the course of the trading week to test the 50-Week EMA. The candlestick from the previous week suggests that there is significant resistance just above, but at this point it’s very unlikely that things are going to be easy going forward. After all, there’s a lot riding on the jobs number coming out on Friday, as people will try to figure out what the Federal Reserve is going to do next. Recently, it has been suggested that they are going to slow down with their rate hikes, and that has Wall Street excited, but the reality is that they are going to stay tight for quite some time.

Another thing that you need to keep in mind when you look at the chart is that both Thursday and Friday would have been very thin trading to say the least, so therefore you can only read so much into the candlestick. The next several sessions will almost certainly determine where we go for the next several weeks, waiting for the Federal Reserve statement in December.

At this point, you need to be very cautious about your position sizing, but I don’t necessarily think that we are getting ready to sound the “all clear” in the market, but perhaps there is the possibility of the fabled “Santa Claus rally.” This is when money managers do everything they can to start buying assets that make them look better at the end of the year than their performance actually was. With this, we may get that little bit of a bomb, but I suspect that it’s only a matter of time before the sellers return.

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