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

The S&P 500 rallied it during the week, but it should be noted that most of that rally was during the day on Friday. At this point, the market looks very likely to continue grinding it out to the upside, but it is getting a bit stretched.
Christopher Lewis
S&P 500 weekly chart, November 18, 2019

The S&P 500 has rallied again during the week, initially pulling back but then broke above the 3100 level. This of course is a good sign, suggesting that perhaps the market is trying to finally grind its way towards the 3200 level based upon the ascending triangle underneath. The breakout was all done on Friday though as traders wait upon the idea of Larry Kudlow suggesting that the Americans and the Chinese are getting closer to some type of “phase 1 deal.”

S&P 500 Video 18.11.19

Markets continue to find reasons to go higher, and quite frankly that was probably just the excuse they needed. The market had been in a decent uptrend for some time, and as a result the excuse that was needed was fine even if it was a bit flimsy. The 3100 level being broken is a certain amount of psychological importance attached to the move as well, so I think we are going to see a move higher. Pullbacks would’ve been great, but it looks like we have managed to digest enough of the gains during the week that the market participants were okay with going long into the weekend.

Even if we did pull back, I suspect that the 3030 level will be supportive, and most certainly the 3000 level will be. Quite frankly, I would prefer to see that because it offers value, but at this point it looks like the market is ready to go higher in general so there is no point in fighting it.

Please let us know what you think in the comments below

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