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S&P 500 Weekly Price Forecast – Stock markets continue to reach towards the highs

The S&P 500 rallied a bit during the week but was relatively quiet as we are trying to break out to the upside. Adding more confusion to the mix is the fact that the Friday session was “quadruple witching.”
Christopher Lewis
S&P 500 weekly chart, September 23, 2019

The S&P 500 went back and forth during the course of the week, showing signs of positivity but not enough momentum to continue to break out to the upside. If we can break out above the upside, then the S&P 500 is going to continue to go much higher, but you can also see that the market has been struggling with momentum as of late. Based upon the most recent consolidation area, the S&P 500 should go looking towards the 3100 level before turning back around once we break through the highs. That’s not necessarily a huge move for longer-term traders, so they will more than likely have to look for pullbacks to take advantage of.

S&P 500 Video 23.09.19

All of that being said, the market looks very likely to continue to follow the 50 week EMA underneath which is red, and therefore the uptrend is very much intact. However, we need to make a “higher high”, or risk running out of momentum completely and breaking down finally. After all, the markets have been very nervous to say the least over the last several months, and it now looks as if we still have a lot of nervous traders out there. Beyond that, we also have the US/China trade situation, tensions between the United States and Iran, the drone strikes, and a whole host of other issues. On the plus side though we have central banks out there looking to liquefy the markets so that could continue to propel this market higher.

Please let us know what you think in the comments below

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