The S&P 500 Continues to Face Overhead Pressure for the Week

S&P 500 Weekly Technical Analysis

The S&P 500 initially tried to rally during the course of the week but found enough resistance at the 4500 level to turn things around and show signs of weakness. By doing so, the market looks as if it is going to continue to struggle, and therefore it is very possible that we could go looking towards the 4100 level.

Looking at this chart, it is obvious that we have further to go to the downside, but I think it is probably only a matter of time before we break down. The entire Thursday and Friday sessions were horrific, and they are showing no real signs of letting up. Because of this, I believe that the market is not only going to retest the recent bottom, but we may even break down below there. If we do, I think that the acceleration to the downside will be rather brutal. Keep in mind that Wall Street is just now starting to accept the fact that perhaps they were wrong about the Federal Reserve. The Federal Reserve is going to have to tighten monetary policy rather aggressively, and that will break things, the stock market included.

If we turn around a break above the 4500 level, then we could make an argument for an attempt to change the overall structure of the market, but right now things look rather horrific, and I think it is probably only a matter of time before we see a big move to the downside. If we were to turn around and take out the top of the candlestick for this week, that would be an extraordinarily bullish move.

S&P 500 Forecast Video 25.04.22

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