S&P 500 Weekly Price Forecast – Stock Markets Have Worst Weekend YearsThe stock markets got absolutely pummeled this week, as I am sure you know of by now. The markets have broken all the way down to the 2900 level in the S&P index by the time midday Friday came about.
The S&P 500 has had a horrific week, showing extreme volume to the downside. By reaching all the way down to at least the 2900 level during the week, the market looks as if it is starting to change its tune in general. That makes quite a bit of sense as coronavirus is starting to spread, and there’s no way to price and what kind of damage a global epidemic could cause. At the very least, you will be looking at economies slowing down, if not grinding to a standstill.
S&P 500 Video 02.03.20
I believe at this point it’s very likely that the market participants will continue to see value hunters eventually, but we need to see some type of headway made when it comes to the coronavirus and its spread. There might be central bank coordinated efforts over the weekend, but quite frankly that will only be a temporary solution to this very major problem. At this point, rallies are to be sold into, and certainly can’t be trusted, at least not until some type of major change comes along. This has been absolutely brutal week, and typically weeks like this down end up being a “one-off event.” With this, I remain bearish but recognize that a relief rally probably comes relatively soon. That relief rally will simply be an opportunity to get short yet again or perhaps short covering done by others. It’s not assigned to start jumping into the market without some type of actual fundamental change in what’s going on.
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