S&P 500 Weekly Price Forecast – 3200 Continues to Be Point of ContentionThe S&P 500 rally during the week but has given back a bit of the gains to turn things around and form a shooting star. There is also support underneath.
The S&P 500 initially rally during the trading week but has given back enough of the gains to suggest a return to the 3200 level. This is an area that I think will continue to be worth paying attention to, as it was previous resistance. However, the candlestick of course suggests that we are going to struggle.
The candlestick before of course is a hammer, so that shows that there is also buying pressure. Looking at this, I believe it is only a matter of time before the market has to figure out what it wants to do next. These are conflicting candles and it typically means that there is going to be some type of range started between these two candlesticks. All things being equal, I do think that we continue to go higher and there should be plenty of support underneath to continue going higher.
S&P 500 Video 27.07.20
The Federal Reserve continues to be very loose with its monetary policy and therefore it is trying to lift the market going forward. Ultimately, this is a market that I think will break out to the upside but if we break down below the bottom of the previous candlestick, the market could go down towards the 3000 level which I consider to be the “floor” in the market. If we were to break down below there then I would consider thinking about a trend change, but until then one has to believe that the buyers will be there on dips in order to take advantage of value going forward.
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