S&P 500 Weekly Price Forecast – Stock markets get crushed this week

The S&P 500 broke down significantly to form a very ugly candle stick for the week, breaking through a major support level. The major support level of course is the 2950 handle as it was a gap on the daily chart. Now that we are below that level, it’s likely that we will go to the 2900 level, and then perhaps down to the 2850 level after that.

S&P 500 Video 05.08.19

We are getting through earnings season relatively unscathed this far as those announcements are concerned, but quite frankly nobody cares. The stock market is about loose monetary policy in the US/China trade negotiations which of course don’t seem to be going very well.

The candle stick is very negative, and if we break down below the bottom of it I think that will bring in more selling orders to drop this market even further. Quite frankly though, this is a market that needs to pullback a bit based upon what we have seen recently. Ultimately, if we were to turn around and break above the recent highs, it would be a clear slicing through major resistance. A break above these three previous candlesticks would of course be extraordinarily bullish and it would recognize a major break out for a longer-term move. I don’t think that happens though, at least not in the short term. I anticipate that this market will continue to be negative for the next couple of weeks. However, that should offer value the people will be looking for.

Please let us know what you think in the comments below