S&P 500 Weekly Price Forecast – Stock markets flat for the week

Stock markets went back and forth during the week, gapping higher on Monday but then slicing back and forth over the next several days as we aren’t quite sure what to do. However, by looking at the weekly S&P 500 chart, there are some clues to pay attention to.
Christopher Lewis
S&P 500 weekly chart, June 17, 2019

The S&P 500 went back and forth during the week, gapping higher on Monday but then formed a couple of shooting stars, which were turned around and followed by a couple of hammers. That of course was on the daily candle stick chart, which you don’t see here. During the weekly timeframe we essentially formed a neutral candle stick, which in and of itself may or may not say much, but what it does tell us is that the market is thinking and churning right now. The real tell in this chart is the previous candle stick.

S&P 500 Video 17.06.19

The massive bullish candle stick last week tells me that there is a lot of buying pressure underneath, although we are at extraordinarily high levels. I anticipate that this may have something to do with the Federal Reserve getting ready to cut rates, or at least Wall Street expecting it to. With that, I think that the market probably goes looking towards 2950, perhaps even 3000, an area that a lot of analysts have expected to be tested for a long time.

Pullbacks from here should find plenty of support all the way down to the bottom of the previous weekly candle stick, so therefore it’s not until we break down below there that I think longer-term traders would be sellers. Ultimately, look for value because you should probably find it on short-term pullbacks but longer-term I think we have a real fight on our hands closer to the 3000 handle.

Please let us know what you think in the comments below

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