S&P 500 Weekly Price Forecast – Stock Market Prints Negative Candle

The S&P 500 initially tried to rally during the week, but then gave back the gains as we have touched the 3340 handle. Ultimately, the market continues to see a lot of bullish pressure underneath, but obviously there are a lot of headline risks out there when it comes to China. The Manufacturing PMI figures came out a little soft on Friday, so that could have pushed the market a little bit lower but given enough time I think that the value hunters will come back in.

S&P 500 Video 24.02.20

All things being equal though, the market is overdue for some type of correction so although we could pull back, I’m not looking to short the market. I think the 50 week EMA is going to continue to go higher and try to offer a significant amount of support. To the upside, I believe that the market will probably go looking towards the 3500 level, which is my longer-term target. That being said though, I think it might be a little bit noisy on the way.

The United States will continue to be thought of as a bit of a safety trade, and the S&P 500 is one of the most common ways to play that trade. Because of this, I think the downside is somewhat limited, as we have seen time and time again. It’s not until we break down below the 3000 level that I would be concerned about the longer-term uptrend. This market continues to chug right along to the upside.

This article was originally posted on FX Empire

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