S&P 500 Weekly Price Forecast – Stock Markets Slam Into the 50 Week EMA

S&P 500 Weekly Technical Analysis

The S&P 500 has gone back and forth during the course of the trading week, as Friday was a little bit tough. Because of this, the market looks as if it is going to perhaps pull back from here. It makes quite a bit of sense, as the jobs added during the month of July almost certainly guarantees that the Federal Reserve will have to tighten monetary policy. This is a bit interesting, considering that the Federal Reserve has spent most of the last week or so trying to explain to Wall Street how they really were serious about tightening.

If we break down below the 4100 level, it’s likely that this market will head back to the 3900 level given enough time. On the other hand, if we were to turn around a break above the 4200 level, then it’s possible that this market could go looking to the 4300 level, and then change the entire trend. Regardless, higher interest rates will almost certainly put a lot of downward pressure on this market, not the least of which the fact that we are going to head into a recession. Earnings are going to fall, and that should have a negative effect on the S&P 500, at least until Wall Street comes up with the next hopium scenario where the Federal Reserve is going to come and bail them out.

Friday showed just how precarious the situation is, so I suspect that we will start to see a little bit of a continuation to the downside. However, if market participants decide to push this market higher, I’m not going to argue, I will simply follow prices because that’s all you can do in a market that’s completely disconnected with reality.

S&P 500 Weekly Forecast Video for the Week of 08.08.22

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