S&P 500 Weekly Price Forecast – Stock Markets Recover Late in the Week
S&P 500 Weekly Technical Analysis
The S&P 500 has fallen significantly during the trading week in the futures market to drop all the way down to the 3858 level before turning around and bouncing. The resulting candlestick is a bit of a hammer, but I also recognize that there is a lot of resistance just above in the area of 4100. The area just above there offers quite a bit of resistance as well. In other words, any rally at this point in time will more than likely find plenty of sellers. In fact, from a longer-term standpoint, I would need to see the highs of the inverted hammer from the previous week taken out to the upside. That essentially means 4300.
If we break down below the bottom of the candlestick for this week, that opens up a move much lower, perhaps down to the 3600 level. We have most certainly broken significant support, so one has to wonder whether or not we are simply bouncing to test that area for resistance? I suspect that answer will be obvious over the next couple of days. At this point, the market looks threatened, but one has to wonder how much worse this would have gotten had we not had the weekend. The market also just essentially formed a bit of a head and shoulders as well.
The only thing you can count on at this point is a lot of volatility, and therefore you need to be cautious about your position size. The volatility is only going to get worse at this point, so be cautious.
S&P 500 Forecast Video 16.05.22
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This article was originally posted on FX Empire
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