S&P 500 Weekly Price Forecast – Stock Markets Break Through Minor Resistance

The S&P 500 has rallied a bit during the trading week, reaching towards the 3200 level. We have not been able to reach that level yet though, and I do think that it is an area that is begging for a retest. Because of this, I think that you continue to look at dips in the S&P 500 as a potential buying opportunity. Keep in mind that the earnings season is about the start, so we could get some type of jolt to the market.

Nonetheless, I believe that it is only a matter of time before the market recovers. Even if we do break down from here, there is a massive amount of support around the 3000 level, so I think it is imperative that you pay attention to the possibility of the 50 week EMA offering support and value hunters coming in to pick up the S&P 500 at that point.

S&P 500 Video 13.07.20

If we somehow break above the 3200 level, then it is likely that we will then continue the uptrend, reaching towards the gap near the 3350 level, and then possibly the all-time highs near the 3400 level. I think we are certainly going to try to do that based upon Federal Reserve liquidity, so at this point in time I still think this is a bit of a “buy on the dips” scenario, regardless of the fact that the economy is a completely different story. When you are looking at the stock market, you can see this is all about the Federal Reserve.

For a look at all of today’s economic events, check out our economic calendar.