S&P 500 Weekly Price Forecast – stock markets crash again this weekThe S&P 500 market broke down significantly during the week, slicing through the vital 2700 level, which is the 61.8% Fibonacci retracement level. This is a very negative turn of events I think quite frankly at this point we are looking at a market that has done an extraordinarily large amount of technical damage.
The S&P 500 initially tried to rally during the week, but the technical damage continues to be a major factor in this market, and it appears that the damage should continue to be something to pay attention to. Quite frankly after we see these types of breakdowns, it’s likely that rallies will be treated with suspicion, and sold off quite stringently. Are we likely to bounce from here? Quite frankly, I would suspect that it very well could happen, but signs of exhaustion would be opportunities to sell this market, perhaps off the daily chart not necessarily the weekly chart. The 2600 level underneath would probably be supportive, but the 2550 level is the 100% Fibonacci retracement level, which typically gets tested after you slice through the 61.8% Fibonacci retracement level.
At this point, I think that stock markets are extraordinarily dangerous, so I would not be a longer-term buyer until we get some type of supportive candle on the weekly timeframe, which at this point doesn’t look very likely. However, always keep an open mind and pay attention to what the markets telling you, it not trying to anticipate what’s about to happen. This is a market that has been shellacked and there are a lot of fearful traders out there right now. However, the selloff has been brutal enough that I think value hunters are going to show up relatively soon.