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S&P 500 Weekly Price Forecast – Stock Market Prints Negative Candle

The S&P 500 initially tried to rally during the week, but then broke down significantly. At this point, the market looks as if it may try to go reaching towards the uptrend line. Either way though, the market is still bullish.
Christopher Lewis

The S&P 500 initially tried to rally during the week, but then gave back the gains as we have touched the 3340 handle. Ultimately, the market continues to see a lot of bullish pressure underneath, but obviously there are a lot of headline risks out there when it comes to China. The Manufacturing PMI figures came out a little soft on Friday, so that could have pushed the market a little bit lower but given enough time I think that the value hunters will come back in.

S&P 500 Video 24.02.20

All things being equal though, the market is overdue for some type of correction so although we could pull back, I’m not looking to short the market. I think the 50 week EMA is going to continue to go higher and try to offer a significant amount of support. To the upside, I believe that the market will probably go looking towards the 3500 level, which is my longer-term target. That being said though, I think it might be a little bit noisy on the way.

The United States will continue to be thought of as a bit of a safety trade, and the S&P 500 is one of the most common ways to play that trade. Because of this, I think the downside is somewhat limited, as we have seen time and time again. It’s not until we break down below the 3000 level that I would be concerned about the longer-term uptrend. This market continues to chug right along to the upside.

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