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.

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