S&P 500 Weekly Price Forecast – S&P 500 shows resiliency for the week

The S&P 500 initially fell during most of the week, but comic bit of a gift from the jobs figure and of course Jerome Powell.
Christopher Lewis
S & P 500 weekly chart, January 07, 2019

The S&P 500 initially fell during the week, reaching down into roughly half way of the body from the previous candle stick. Turning around to form a hammer after Jerome Powell suggested that the Federal Reserve was paying attention to the markets show signs that we are trying to bounce. We are forming a bit of a hammer, that of course is a bullish sign as well also. If we can break above the top of this candle stick I suspect that we are going to go looking towards the 2600 level, which is where I expect to see significant resistance. It was significant support previously, and the fact that the market rallied based upon the idea of the Federal Reserve stepping to the side and slowing down its balance sheet reduction shows you just how fragile the market really is.

S&P 500 Video 07.01.19

This brings into question the likelihood of continued bullish pressure once everybody starts to think about things. If it’s going to take the Federal Reserve to save the market, then is the market really worth saving? We need to see good earnings this earnings season to continue going higher, which is a couple of weeks away. I think the next week or two is going to be choppy yet positive, but given enough time I do think that the sellers come back in. I would of course change my mind if we can blast through the 2600 level like it’s not even there, but right now I think that’s the next major fight. Short term, I think this is bullish, but longer-term I’m much more skeptical.

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