S&P 500 Weekly Price Forecast – stock markets showed resiliency during the weekThe S&P 500 initially spent the week falling, but as you can see by the candlestick it appears that we are going to form another hammer. This shows just how important the 2900 level is, and if we can stay above there on a daily chart, I think that the longer-term traders will take a bit of solace in that action, perhaps leading to a self-fulfilling prophecy of 3000.
The S&P 500 has been a bit shaky during the week but has showed resiliency where it counts the most: the 2900 level. We are very much in and uptrend, and at a gentle angle, which suggests that we are not over exuberant, which is always a good thing. At this point, I believe that the market is going to continue to try to go to the 3000 handle, an area that I have been calling for some time. If we break down below the 2875 handle, then I think a significant reset is in order, perhaps reaching down the 2800. Longer-term, I think that the 3000 level will be the target as mentioned previously, but I also recognize that it could be a major barrier to break. We could get a bit of a “blow off top” after that, as I do think that we are getting awfully “long in the tooth” when it comes to the rally.
Having said all of that, I’m not worried about the short term, I think it’s obvious that we are going to spend the rest of the year trying to climb. Obviously, headlines can change everything but considering that we are rallying right into a trade war, that shows just how much underlying buying pressure there is.