S&P 500 Weekly Price Forecast – The S&P 500 Powers Higher

S&P 500 Weekly Technical Analysis

The S&P 500 has rallied during the course of the week to break above the 50 Week EMA. Furthermore, it is also broken above the 4200 level, which is obviously an area that is a large, round, psychologically significant figure and would probably attract quite a bit of attention just because of that. We now look to the 4300 level, an area that has been important a couple of times. Because of this, it’s likely that we will see a big fight in that area, perhaps showing signs of exhaustion.

If we were to break above the 4300 level, then it’s likely that we go much higher, perhaps reaching the 4500 level. This is an area that I think should show quite a bit of exhaustion, so if we do fail here, the market then probably turns around and retest the 4200 level. Breaking down below the 4200 level could open up even deeper losses.

It’s worth noting that there is a huge argument as to whether or not the Federal Reserve is going to be aggressive or not, and it’s likely that we will see a lot of volatility, and of course confusion. If the Federal Reserve does in fact get aggressive again, they could send this market straight back down. On the other hand, if we break above the 4300 level, then it’s likely that we could go to 4500, perhaps even the 4600 level. Either way, it’s likely that we are going to see a lot of noisy behavior, and therefore you need to be cautious with your position sizing.

S&P 500 Weekly Forecast Video for the Week of 15.08.22

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