S&P 500 Weekly Price Forecast – Stock Markets Stall For The WeekThe S&P 500 went back and forth during the week, showing signs of exhaustion as we are clearly a little overextended. That being said though, there are plenty of support levels underneath that I will be watching.
The S&P 500 has gone back and forth during the course of the week, showing signs of exhaustion. Ultimately, the market is a little overreaching at this point, and you can see that we may form the second red candle for the last 20 or so. That tells you that the market needs to pullback in order to find momentum, and quite frankly that’s something that’s going to be necessary. The 3250 level is support, but then again so is the 3200 level. The 50 week EMA is currently hanging around the 3000 level which is also where the 200 day EMA is on the daily chart simultaneously, a very significant level.
S&P 500 Video 27.01.20
Looking at the upside, if we do break to the top of the range for the week, we probably go looking towards the 3350 level, but I don’t like the idea that we go higher and simply continue. I think the market desperately needs to pullback in order to build up enough momentum to go higher, and right now that is what would make a lot of participants much more comfortable putting money to work. Looking at this chart, it looks likely that the longer-term trend is very much intact, but nothing can go straight up in the air forever and therefore we may get a couple weeks’ worth of churning or perhaps fading this massive move. Nonetheless, it’s not until we break down below the 3000 handle that I’m thinking about shorting this market. Even then, I would have to see where we are in the global situation.
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