S&P 500 Weekly Price Forecast – Stock Markets Get Hammered

The S&P 500 has broken down towards the 3200 level underneath, which is an area where we have seen a nice bounce from in September. Furthermore, it was previous resistance so looking at this chart it appears that we are ready to see quite a bit of negativity going into the election, but the 50 week EMA is sitting at the 3156 level, and it should come into play. Because of this, it is very likely that we will continue to see 3200 be important, so at this point in time I think we may simply go more sideways than anything else. Even if we do break down from here, I believe that the 3000 level comes into play. That is a large, round, psychologically significant figure and will attract a certain amount of attention regardless.

S&P 500 Video 02.11.20

Wall Street is somewhat concerned about the election, and whether or not there will be some type of clear decision at the end of the day on Tuesday. At this point and looks very unlikely to be the case due to the fact that a lot of Americans are mailing in their ballots this year. Furthermore, there are hotly contested areas that will almost certainly lead to court cases, so the question is not so much as to whether or not a particular candidate wins, but whether the makeup is all Democrats, a mix, or whatever. I suspect that the next week candle will probably be well within the range or negative, but I do not anticipate that it is a longer-term move.

For a look at all of today’s economic events, check out our economic calendar.