S&P 500 Weekly Price Forecast – stock markets look weak

The S&P 500 tried to rally during the week but found the 2700 level be too much. Weak economic numbers on Friday pushed the  S&P 500 lower as well, forming an inverted hammer. At this point, I think if we break down below the 2600 level again, and I do think that it will, this market is going to come undone. We are breaking below the bottom of a 200 point range, and that could be the target, 2400 after that point.

S&P 500 Video 17.12.18

The market continues to struggle with the idea of global growth slowing down, and I think that at this point we are likely to see this market struggle until we get some type of agreement between the Americans and the Chinese, perhaps better economic figures, and may be some help from the Federal Reserve. In other words, no matter what happens I think we are destined to go lower at this point. However, if we break above the 2700 level, it’s likely that we could go to the 2800 level. That seems to be very unlikely and I give that roughly a 10% chance at this point in time. I give it almost no chance that we break above 2800 before the end of the year.

I suspect there’s more pain to be had, as the stock market has so many crosswinds and so many issues right now that it’s going to be difficult to see this market find some type of relief for any length of time. The short-sellers smell blood, and they are becoming more aggressive.