S&P 500 Weekly Price Forecast – stock markets stabilize

The S&P 500 has gone back and forth during the week in a slightly positive candle. Quite frankly, anything beyond the massive selloff would’ve been positive after the brutality of the previous week. We have shown the 50% Fibonacci retracement level at 2750 to be supportive, and we have even broken above the 2800 level during the week. While this is the most confident candle, it does show that at least there are buyers still out there, or at least there are less sellers. That’s a big deal considering how brutal last week was.

At this point, if we can clear the 2800 level I think we then continue to go much higher. If we break down below the 2700 level, it is a breaking of the 61.8% Fibonacci retracement level, which almost always means that we go down to the 100% retrace at the 2550 handle. I think that there are a lot of headlines out there that can move this market place, but we are still in and uptrend and I think that fear is good, because quite frankly people had been so much in the way of complacent that there were a lot of problems. A little bit of fear goes a long way as any longer-term trader will tell you, markets climb higher, but take the elevator down. I think that’s what we have just seen. Don’t get me wrong, I think that we are getting late cycle and I think we will eventually pull back rather significantly, but I believe in the short term we have another shot higher.

S&P 500 Video 22.10.18