Stock Markets Testing the Previous Trendline for the Week

S&P 500 Weekly Technical Analysis

The S&P 500 has had a slightly positive week but as you can see we are testing the previous uptrend line currently. Because of this, we are about to make a move that will be very interesting, especially as we are at a large, round, psychologically significant figure in the form of 4500. All things being equal, this is a market that would more likely than not drop if we break down below the bottom of the weekly candlestick, but if we were to break above the top of it, then it is likely we go looking towards the highs again.

Keep in mind that the market has been very erratic over the last couple of weeks, and bear market rallies do tend to be very strong. With this, I believe that the market will have to figure out where it wants to go next, especially as we are in a situation that has so much in the way of geopolitical risks, inflationary concerns, and almost impossible yearly comparisons for most of the companies involved. With this, I think we are not out of the woodwork yet, although the weekly candlestick from the previous week was very impressive.

Pay attention to the next impulsive move, that could probably tell us where we are going for a bigger move. Ultimately, this is a market that has a lot of deciding to do in the next few weeks. Be cautious, and keep your position size small in these types of trading environments is probably the best thing that I can suggest when it comes to trading the chaos.

S&P 500 Weekly Technical Analysis Video 28.03.22

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