S&P 500 Weekly Price Forecast – Stock Markets Continue to Fight

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S&P 500 Weekly Technical Analysis

The S&P 500 has fallen quite significantly over the week, but it’s worth noting that the last three candlesticks have been hammers, suggesting that we’re very close to seeing some type of balance, perhaps even a break to show signs of life. That being said, I think the market is more likely than not to be a scenario where we find some short-term recovery and then maybe an attempt to test the 4200 level. The 4200 level is also a zone which saw significant resistance, so if we could remove that level, it would change the overall trend.

On the other hand, if we were to turn around and fall below the 3640 level, and by extension the 200 day EMA, then this market is likely to collapse quite drastically. All things being equal, I think this is a bit of an oversold market, so a short-term bounce makes some sense. Keep in mind that we are heading headlong into earnings season, so you need to pay close attention to pre-market volatility, but I also think the market is going to continue to be choppy and noisy, and you’ll have to also worry about the fact that we are almost certainly heading into a recession, despite the fact that some people on Wall Street would have you believe otherwise.

Ultimately, I think the rallies that fade will continue to work, but we need to let those rallies happen first in order to capture a small opportunity and a better risk/reward ratio.

S&P 500 Weekly Forecast Video for the week of 7/18/22

For an overview of all of today’s economic events, check out our economic calendar.

This article originally appeared on FX Empire

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