S&P 500 Weekly Price Forecast – Stock Markets Continue to Slump
The S&P 500 initially tried to rally during the course of the trading week but gave back the gains as we plunged towards the 4500 level. We have stabilized a bit, but quite frankly one of the biggest drivers would have been Jerome Powell suggesting that we get rid of the word “transitory” to describe inflation. After that, the jobs number came out much lower than anticipated, which of course had people concerned.
S&P 500 Video 06.12.21
With this being the case, it is very likely that we will look towards the uptrend line underneath, which has a significant amount of importance attached to it. With this, am waiting to see some type of supportive action or of bounce to get involved, or perhaps a move to break above the top of the inverted hammer that we have formed. If we break down below this uptrend line, then the market is likely to go looking towards the 4200 level, an area that also features the 50 week EMA and has been significant support and resistance previously.
Remember, you do not short US indices, but you can buy puts. I understand that there are always people out there who are willing to argue with me on whether or not you could short the US indices, but all you have to do is look at the chart that I am attaching to this article and see where the “smart money” parks itself. The idea of being a contrary and is cute and all, but it does not make money over the longer term. With this being the case, if we break down below 4200, I would be a buyer of puts, but that is as aggressive as I get to the downside.
For a look at all of today’s economic events, check out our economic calendar.