S&P 500 Weekly Price Forecast – Stock markets continue sideways grind

The S&P 500 has gone back and forth over the last several weeks, with this week being a positive one. At this point, I believe that we are going to continue to find buyers on dips, but right now we are simply churning the gains in trying to come to grips with the idea that the 3000 will be in the rearview mirror.
Christopher Lewis
S&P 500 weekly chart, July 29, 2019

The S&P 500 has rallied significantly during the week, showing signs of strength as we remain above the 3000 handle. At this point, the market looks as if it is ready to go higher, but most of the top end of the candle was formed during Friday, which means that we may get a little bit of a pullback by the time we close out the candle stick. Ultimately, I think short-term pullbacks will be buying opportunities for those looking for value.

S&P 500 Video 29.07.19

The 3050 level above will probably be targeted next but given enough time I think we go even further than that. We are in and uptrend and have had a recent surge higher. The market continues to churn and try to digest gains after this type of move which is relatively normal. Ultimately, the 2950 level is a gap on the daily charts, so at this point if we were to break down below there it would be a very negative sign and could send this market down towards the 2900 level next. To the upside, the market should continue to go higher given enough time though, as the Federal Reserve is looking to cut interest rates and they will most certainly be very dovish. If they are dovish enough, that could send stock markets much higher given enough time, and therefore it’s likely that we go higher rather than lower.

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