S&P 500 Weekly Price Forecast – stock markets take back much of the losses for the week

The S&P 500 spent most of the week rallying, reaching towards the 61.8% Fibonacci retracement level, and the top of the shooting star from a month ago. This market has seen a lot of technical damage done to it, and while things looked good for most of the week, Friday was a bit of a letdown. I think the next couple of weeks are going to be very choppy to say the least but if we can break above the highs of this week that should give the “all clear” to reach towards the highs again at 2950 or so.

S&P 500 Video 12.11.18

Market participants continue to be very skittish, and quite frankly it’s not going to take a lot of conviction to stick with any trade right now, because there’s so much in the way of volatility and uncertainty right now. It’s really not until we break out to the upside that there would be some clarity in this market. I believe that longer-term traders will probably have an opportunity to pick up the S&P at lower levels, and therefore find value underneath. Longer-term traders probably won’t short this market, because it is in an uptrend still. Overall, I think that the 2600 level is massive support as we have seen it hold the market up several times. Overall, this is a scenario where short-term buyers will continue to throw things around, so I would use small positions in the meantime, at least until we get clarity.