S&P 500 Weekly Price Forecast – Stock markets get hammered on Friday to form a shooting star

The stock markets in America got hammered during the day on Friday, making up most of the red shooting star that you see on the chart. That is of course a sign that we are running into serious trouble.
Christopher Lewis
S&P 500 weekly chart, March 25, 2019

The S&P 500 tried to rally during trading on Friday, but then got crushed as we ended up forming a very negative weekly candle stick. That being the case, it looks likely that we are going to continue to see sellers jump into this market place and punish stock markets after the extraordinarily negative PMI numbers that have, out of the United States and Germany. There are real concerns about a recession globally now, and as a result it looks as if we are trying to find some type of shelter. That being said, the 2800 level underneath is significant support, and could cause a bit of a bounce. If we can break above the top of the weekly candle stick, that would be an extraordinarily bullish sign.

S&P 500 Video 25.03.19

If we do break down, it’s very likely that we go looking towards the 2750 handle, an area that has been supported over the last couple of weeks. I think at this point markets are really spooked, and the volatility will continue to be a major issue. In general, this is a market that is very possibly going to be bearish going forward, unless of course we start buying the “bad news is good news” scenario as it could keep the Federal Reserve on the sidelines. Ultimately though, I do think that we have a bit of a pullback coming which quite frankly has been needed for some time. One thing you can count on is a lot of noise.

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