S&P 500 Weekly Price Forecast – Stock Markets Look Confused

The S&P 500 has gone back and forth during the course of the week, as we have hung around the 50% Fibonacci retracement level and formed a bit of a neutral candlestick. Ultimately, the market looks very noisy and therefore I think we are more likely to see a pullback rather than a continuation of the rally. After all, when you look at the rally, it has shown that we are starting to run a bit slower than we had been, which would be expected but I think that the lack of momentum is going to be a somewhat negative sign.

If we break down below the bottom of the candlestick for the week, that could send this market much lower again. Quite frankly, the economy has taken an extreme body below and I think that it’s very unlikely that we simply take off from here. It’s not impossible, it just would be unlikely.

S&P 500 Video 20.04.20

Add to that the fact that we are in the midst of earnings season, then you have a recipe for a lot of trouble. The 61.8% Fibonacci retracement level above at the 2950 area should offer a significant amount of resistance. That being said, even though we do rally from here it’s probably only going to give us more of an interest in trying to short signs of exhaustion. I think the market rallying on the low-volume is a very negative sign. Ultimately, I do think that we have another leg lower so I’m looking for a breakdown below this week’s candle.