S&P 500 Weekly Price Forecast – S&P 500 Continues to See Upward Pressure

S&P 500 Weekly Technical Analysis

The S&P 500 initially pulled back during the course of the week only to turn around and show signs of life. The 5,000 level of course, is an area that attracted a certain amount of attention. And now it looks like we’re ready to go parabolic again. This is going to end poorly, but as things stand right now, there is still plenty of momentum.

Ultimately, the 4,800 level underneath is an area that I think would be defended quite heavily, but that’s 300 points below and in a market that is over the top bullish. With that being said, I like the idea of buying dips. I don’t think there’s any reason to try to fight this trend and wouldn’t even start to consider shorting until we were down at 4,600.

So, at this point, you are either going to see sideways action or you are going to see resilience in the upward momentum. I suspect this chart doesn’t take a whole lot of imagination to figure out which direction we are going to continue to go. After all, the S&P 500 is driven by just a handful of stocks, and as long as everybody continues to buy the same thing, there’s only one outcome that you get and that would be for the market to go much higher. That being said, watch all of the widely followed stocks to see what they are doing so that you can get an idea as to what this market will do.

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