S&P 500 Weekly Price Forecast – Stock Markets Rollover For The Week

The S&P 500 has initially gapped during the week, turned around to reach towards the bottom of that gap, and then broke down further. At this point, the market is likely to rollover a bit, as people are starting to concern themselves with the coronavirus and China, and what kind of economic drain it will be over the next several months. Furthermore, there are reports that the virus is getting worse, not better. Ultimately, I do see a significant amount of support near the 3200 level though, so that would be the next area where buyers could return. If that level breaks down, then it’s likely that we go down to the 3100 level after that.

Don’t be wrong, longer-term I am still very bullish, and I think that eventually the buyers come back in and pick this market up “on the cheap.” Quite frankly, it has gotten ahead of itself anyway so it’s likely that the coronavirus is simply the excuse of the market needed to start selling off again. The 50 week EMA is closer to the 3000 level, so it’s also possible that the market would pay quite a bit of attention to that technical analysis as well. All things being equal, I like the idea of buying dips, and we may finally get an opportunity to do so. Longer-term I still believe that this market goes looking towards the 3500 level but it’s going to take some time to get there obviously. Short-term negativity should be avoided, simply step to the side and wait for value to present itself.