S&P 500 Weekly Price Forecast – Stock Markets Pull Back from 50 Week EMA

The S&P 500 rallied during the week, reaching towards the 50 week EMA. The market also had tested the 61.8% Fibonacci retracement level and an area that has a bit of a gap attached to it. That being said, it is obvious that the market is running into significant resistance, but we also have quite a bit of support underneath in the form of a couple of hammers. Typically, when you see this type of pattern of off, it is quite often that you are entering a new range.

S&P 500 Video 04.05.20

If that is going to be the case then it is going to be very difficult to trade this market from a weekly candlestick perspective, but you can use these candlesticks, the top of the shooting star in the bottom of the dual hammers as your range to play on the daily chart. I think that is probably where rent, because quite frankly the world is trying to figure out what the normal situation is going to be like as economies open. We have seen an exuberant marketplace, one that is quite frankly far too exuberant, so do not be surprised at all to see the negativity show up again, but whether or not we break down significantly will depend on whether or not we can break below over the previous two weekly candlesticks. If we do not, then I think we are going to bang around sideways in a relatively large range between 2950 and 2750.