S&P 500 Weekly Price Forecast – Bullish engulfing candlestick for the week

The S&P 500 gapped lower to kick off the week but has spent most of the time since then rallying rather significantly. That being the case, it’s very likely that we are going to see significant bullish pressure.
Christopher Lewis
S&P 500 weekly chart, June 10, 2019

The S&P 500 has initially gapped lower to kick off the week, but then has shot straight up in the air as Jerome Powell suggested that the Federal Reserve wells willing to step away from its tight monetary policy and kept an open mind for doing whatever it takes to stabilize the markets. With that, it gives Wall Street a bit of a “blank check” when it comes to buying assets. With that, we did of forming a massive engulfing bullish candle stick, something that you don’t see every day on the weekly chart.

S&P 500 Video 10.06.19

We have sliced through a couple of resistance barriers later in the week, so now it looks like we are going to make another attempt to reach towards the 3000 handle. Longer-term traders see this is a good sign, and although I believe that the 3000 level will cause a bit of trouble, it now looks as if we may even be able to break above there.

The bearish case for a longer-term trade can’t be made at this point, unless of course we were to suddenly turn around and wipe out the candle stick we just formed. That seems very unlikely, so therefore one would have to think that the buyers are very much in control at this point. If we were to break above the 3000 handle, we will have just entered another “buy-and-hold” type of scenario. If we were to break down below the 2700 level, then we could break down rather significantly.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.