S&P 500 Weekly Price Forecast – S&P 500 Defies Gravity Again
S&P 500 Weekly Forecast Video for 30.01.23
S&P 500 Weekly Technical Analysis
The S&P 500 E-mini contract has rallied over the course of the week, but at this point in time I think we’ve got a situation where the market is trying to convince itself that the Federal Reserve is going to step in and save it. I anticipate that if we don’t see some type of significant selling and quick, Jerome Powell will do everything he can to destroy this myth. Whether or not Wall Street chooses to pay attention to them is a completely different situation, because we have an entire generation of traders and money managers that have never dealt with inflation. All they know is that “Uncle Jerome” will come save them if losses get to be too bad.
The size of the candlestick is somewhat impressive, and if we were to take out that inverted hammer from about 2 months ago, that would be clearing the 4200 level. That would be a very bullish move, and despite the fact that the fundamental simply do not line up with the market going higher, the one thing you cannot argue with is price.
On the other hand, if we were to break down below the bottom of the candlestick, we will threaten the 3900 level, perhaps even opening up a move down to the 3800 level. After that, we have the 200-Week EMA just above the 3700 level, and this is an area where we continue to see a lot of support as well. Alternatively, if we were to break down below there it could get rather ugly. In that scenario, we would see a very negative move.
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