S&P 500 Weekly Price Forecast – Stock Markets Continue to Carve Out Range

The S&P 500 has shown itself to be negative during the trading week but did find support at the very bottom of the previous week. That being said, we are currently hugging the 2800 level, the 50 day EMA (on the daily charts obviously), and the 50% Fibonacci retracement level. All things being equal, I believe that the market is going to continue to struggle to show a clean move, and I would also point out that the 61.8% Fibonacci retracement level features a negative looking inverted hammer that could apply some pressure to the market as well.

S&P 500 Video 27.04.20

Furthermore, I believe that there are plenty of issues out there that will continue to weigh upon the market. After all, we have seen an explosive move to the upside, but at this point in time it’s likely that we are going to continue to see a lot of back and forth and choppy conditions, as there are a plethora of economic dangers out there just waiting to show themselves again. If we break down below the weekly candlestick and the one before it, it would be the forming of a “double hanging man”, something that is rare to say the least, and of course extremely negative. On the other hand, if we break above the top of the candlesticks for the past two weeks, that opens up a move to that 61.8% Fibonacci retracement level. For a longer-term trader you need to see one side of these two candlesticks broken or the other before you can put anything on with confidence.