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.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.