S&P 500 Weekly Price Forecast – stock markets show signs of strength again

The S&P 500 rallied significantly during the week, reaching towards very high levels again. At this point, it’s likely that the markets will face a significant amount of resistance  extending to the 2800 level. Ironically, President Donald Trump declared a national emergency on the southern border, which created absolutely no response to the announcement in the markets. With this, I think the market is focusing on other things such as trade talks, which of course haven’t really produced anything of substance yet. The 2800 level above is going to be massive resistance and I think it extends quite a bit higher than that. Nonetheless, we have seen a lot of bullish activity and it’s difficult to imagine a scenario where we were all right over without a serious fight.

S&P 500 Video 18.02.19

I think the longer-term investors probably better off waiting for better pricing, or at least a close on the weekly chart above the 2800 level, because I do believe it’s going to be extraordinarily choppy. Global growth is slowing down, but at the same time we have a Federal Reserve that seems a bit more dovish which can help stock markets. All in all, I think this is essentially “no man’s land”, so therefore I don’t have any interest in putting in fresh money. I believe that next week’s candle will be crucial for the longer-term outlook, so until then it’s all short-term back and forth trading for me. Pay attention to the US dollar, if it starts to weekend, perhaps we could get a chance to break out.

Please let us know what you think in the comments below