S&P 500 Weekly Price Forecast – S&P 500 finds support underneath

The S&P 500 initially fell during the week but has turned around of form a somewhat impressive looking hammer. The hammer looks likely to signify that we are trying to break out above the 2800 level, and once we do I think that the market could make a longer-term move. However, if we were to turn things around and break down below the bottom of the hammer that would turn it into a “hanging man”, it only in the most technical manner as we have previously made a higher high than this candle. If we do break down, I think that the 2700 level will offer support, and most certainly the uptrend line will as well.

Given that we continue to have headlines come out over twitter and other places like that involving trade tariffs, this is a market that is going to be very erratic. I most certainly favor the upside, but I would be remiss if I put too much money into the market right away. I think adding slowly, and most certainly above the 2800 level, makes sense as it would allow us to build a larger position for longer-term move to the upside. At this point, I think it’s just simply easier to buy this market on short-term dips and hang on for a move above 2800 to really start to put money to work. If trade tensions calm down, the S&P 500 while most certainly go much higher.

S&P 500 Video 25.06.18

This article was originally posted on FX Empire

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