S&P 500 Weekly Price Forecast – S&P 500 Weekly Chart Shows Potential Consolidation

S&P 500 Weekly Technical Analysis

You can see that we have gone back and forth during the course of the trading week, but it is awfully close to the all-time highs. I don’t necessarily think that this is a market that you want to pile into right now, but clearly you cannot be a seller of this market anytime soon. After all, we’ve seen a massive run to the upside. So sooner or later somebody is going to come out and take profit. Right now, though, it doesn’t really look like we have to worry about it and therefore this remains a one-way situation. You are simply either buyer or on the sideline. 5,000 underneath should be a significant support level and I think a lot of people will be paying close attention to it. So, breaking that would probably capture a lot of attention.

Either way, the S&P 500 looks more likely, if anything, just to go sideways for a while to work off some of this froth. Remember the narrative, and it is the narrative that drives Wall Street, is still down. The Federal Reserve is going to be cutting rates. Employment is still low. The economy is still strong. Back to the Fed, because that’s really what matters. And of course, only a handful of stocks moves this index anyways. So as long as the right five to seven stocks are moving, it goes up. That’s the game we’re playing, and I don’t know if it is going to change anytime soon. Because of this, you are going to have to adapt to what looks like momentum driven trading more than anything else, and you have no business whatsoever trying to fight the trend that is so firmly ensconced in this market.

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