S&P 500 Weekly Price Forecast – S&P 500 Finds Support for the Week

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S&P 500 Technical Analysis

The S&P 500 spent a majority of the week going higher, as the short-covering rally persisted. That being said, the market is still very negative, but the fact that we held onto the 3700 level the way we did is a relatively good sign. At this point, we could go as high as 4000, but I think at that level you have to start thinking about whether or not sellers are going to jump back into this market. After all, the economic situation has not changed, and I think a lot of this is just simply people trying to take profits or expecting a “bear market bounce” in the stock market because quite frankly things don’t go in one direction forever.

That being said, if we were to break down below the lows of the last two weeks, that opens up the floodgates for more selling, perhaps sending this market down to the 3500 level. Underneath the 3500 level would be ugly indeed. That could happen, but I think it’s much more likely that we see a bit of a rally in the short term, followed by selling pressure yet again.

After all, the Federal Reserve still remains resilient in its desire to tighten monetary policy, and that over the longer term will work against the value of stocks. Yields in the bond market have drifted a bit lower, but that makes sense as well because they got far away from the reality of the speed of interest rate hikes. They got overdone, so therefore a snapback reversion to the mean had to happen sooner or later.

US Stock Market Forecast Video for 27.06.22

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This article was originally posted on FX Empire


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