S&P 500 Weekly Price Forecast – S&P 500 Hits Significant Technical Level

The S&P 500 has rallied rather significantly during the week, but it should be noted that it was closed on Good Friday. By breaking through the triple highs from the previous three weeks, the market then slammed into the 50% Fibonacci retracement level rather quickly, near the 2800 level. At this point, the candle close that the very top of the range and it looks very likely that we are going to see a little bit of follow-through. I suspect that as long as we don’t get some type of severely negative news, the market could very well go looking towards the 61.8% Fibonacci retracement level above.

S&P 500 Video 13.04.20

To the downside I would anticipate that somewhere around the 2650 level we will probably see buyers reenter the market, but if that doesn’t hold the neck support level should be near the 2500 level. A breakdown below that level would be catastrophic and should send this market much lower. All things being equal, the market certainly looks bullish so far, but that doesn’t necessarily mean we go straight up into the air. At this point, I think we are simply going to move on the next several headlines involving coronavirus. If it starts to slow down rates of infection, it’s very likely that stocks will continue to rally in the interim, as we anticipate the economy going right back to where it once was. Whether or not it does might be a completely different argument, but clearly some of the worst case scenarios have been taken off the table by the Federal Reserve as the credit crunch is now no longer a concern.