Yahoo Finance S&P 500 Weekly Price Forecast – Stock markets reached towards highs again
The S&P 500 initially pulled back during the week but then shot higher to test the highs yet again. At this point it’s very unlikely that we are going to see an easy route higher but it’s likely that the stock markets will continue to rally based upon the Federal Reserve protecting them. The 50 week EMA has held quite nicely, reaching above the 2500 level. The 3050 level is massive resistance, so if we were to break above there it’s likely that we go looking towards the 3100 level, possibly even the 3200 level.
S&P 500 Video 16.09.19
Pullbacks at this point should continue to attract a lot of attention, but at this point the last three candlesticks have shown that we are looking to break out eventually, and quite frankly even though there are a lot of concerns economically, it’s obvious that the liquidity measures taken by central banks will continue to be the biggest driver of these markets. Ultimately, I think that buying value is the way to go going forward. If we were to break down below the 2800 level, then things get ugly, and between now and then the volatility would just be the usual volatility that we have seen in the market.
One thing I would point out though is that we are running out of momentum and that’s something worth paying attention to. If for some reason the Federal Reserve disappoints, that could be the kickoff to a major selloff. Otherwise, we will probably continue to see buyers on dips.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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