S&P 500 Weekly Price Forecast – Stock markets break down

The S&P 500 rallied a bit during the week to kick things off, but then sliced through the uptrend line. At this point, it looks as if we are about to test the 2800 level, and if that gives way we could see a lot of negativity in this market. There has been a lot of fear, and it does in fact look as if the US/China trade relations are going to be any better. If that’s the case, and with new tariffs implemented on Friday, it’s very likely the Chinese are going to retaliate, and then think it’s only get worse.

S&P 500 Video 13.05.19

Looking at this chart, it’s very likely that we will see volatility going forward, but it looks as if we may be trying to form a top. If we do, then we could really start to accelerate to the downside, perhaps chasing down to the 2600 level enough. However, this is a market that could explode to the upside with good news, especially involving the trade situation. If we do get that good news, the move could be rather explosive. Quite frankly, it’s difficult to get a grip on this market but one would have to think that a double top is a real possibility as the previous week’s candle has now formed a “hanging man.”

Pay attention to the US dollar, if it starts to extend its gains, that will be negative for the S&P 500. Beyond that, pay attention to the US bond markets, because if they rise it should be bad for stock markets as well. About the only thing you can count on right now is a lot of volatility.

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