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S&P 500 Weekly Price Forecast – Stock Markets Give Up Gains for the Week

The stock markets initially tried to rally to the week, but as you can see have given up a significant amount of gains. The S&P 500 tested a major moving average on the weekly chart but failed.
Christopher Lewis

The S&P 500 initially rally during the week, reaching towards the 200 week EMA but then gave back a lot of the gains to end up below the 2500 level again. This is a nasty looking candlestick, which is starting to look like a nice shooting star. A breakdown below the bottom of the shooting star could send this market down to the bottom again, looking down towards the 2200 level. The market certainly is bearish, and it looks like we are running out of momentum again. At this point in time I think that every test of the bottom makes quite a bit of sense, simply because these bear markets are very vicious and hard to shake off. Quite often, the bottom needs to be retested in order to find a “floor”.

S&P 500 Video 06.04.20

At this point, if we were to turn around a break above the 200 week EMA, that would slice through the top of the last three weekly candlesticks, and a gap that has yet to be filled. Once we get above that, then the market really could start to take off to the upside. That being said though, it’s very difficult to imagine that suddenly stocks are going to race straight up in the air. I believe that the bullish case is that we go back and forth in this general area and try to build some type of base. The bearish case of course is that we go down and make a fresh, new low, perhaps reaching down towards the 2000 handle.

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