S&P 500 Weekly Price Forecast – stock markets continue to bang up against resistance

The S&P 500 broke above the 2900 level during the week, but also turned around of form a bit of a shooting star. Because of this, the market looks as if it is not ready to break out and that’s not a huge surprise considering that Labor Day is Monday. With that in mind, and the fact that we have so many noisy situations out there like the US negotiations with Canada and the US negotiations with China, it’s not hard to imagine that traders would not have wanted to carry a lot of risk into the weekend. With that in mind, I think that this market is solely being driven by algorithmic bots reading headlines, and therefore it’s all about the trade negotiations at this point.

When you look at the longer-term charts, it’s easy to see an ascending triangle, so I think that the market certainly will go higher eventually, but at this point it’s so sloppy and messy that is difficult to get overly excited about. Ultimately, this is a market that I will be a buyer of but we may need to pull back a little bit to find enough value to get involved. The shooting star is a negative sign, and quite frankly that could lead us all the way back to the 2800 level. It’s not until we break down below 2800 that I would become concerned about the overall uptrend.

S&P 500 Video 03.09.18