S&P 500 Weekly Price Forecast – Stock Markets Continue To Grind Higher

Stock markets around the United States have continue to grind higher, and the S&P 500 of course was no different. The E-mini contract has reached towards the 3000 level yet again, which is starting to show obvious signs of resistance.
Christopher Lewis
S&P 500 weekly chart, October 21, 2019

The S&P 500 has rallied a bit during the week, grinding towards the 3000 level before pulling back again. The 3000 level is obviously causing a lot of resistance, and of course will be paid close attention to as it is not only a large, round, psychologically important number but it is also an area where we have seen several attempts fail at breaking out. As long as that’s the case, it is an area that will be scrutinized happily.

S&P 500 Video 21.10.19

If we can break above the recent highs from earlier this year, the S&P 500 should be free to break out towards the 3100 level. In the meantime, short-term pullbacks are likely but one thing that you cannot deny about this chart is that the resiliency of the buyers has been quite apparent. We are in the midst of earnings season, so quite frankly that could be something that sends this market much higher. There is a trend line underneath that also supports the market right along with the 50 week EMA. If those both fail, then we can have a different discussion but until then this seems to be a “search for value” type of scenario where buying dips seems to be rewarded. If earnings season is good in the Federal Reserve looks likely to continue easing its monetary policy, it makes sense that the S&P 500 will eventually get that break out that people have been waiting for. Obviously though, things can change so the trend line being broken to the downside is your proxy for a short position.

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