S&P 500 Weekly Price Forecast

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S&P 500 Weekly Technical Analysis

The S&P 500 went back and forth during the trading week as Friday was a little rough. For this reason, the market seems to want to retreat from here. This is quite logical, since the jobs created during the month of July almost certainly guarantee that the Federal Reserve will have to tighten its monetary policy. That’s kind of interesting, given that the Federal Reserve has spent most of the past week trying to explain to Wall Street just how serious it really is about the tightening.

If we break below the 4100 level, it is likely that this market will return to the 3900 level given enough time. On the other hand, if we were to reverse a break above the 4200 level, then it is possible that this market could go for the 4300 level and then change the whole trend. Either way, higher interest rates will almost certainly put strong downward pressure on this market, including the fact that we are heading into a recession. Earnings will fall, and that should have a negative effect on the S&P 500, at least until Wall Street comes up with the next hopium scenario where the Federal Reserve comes to bail them out.

Friday showed just how precarious the situation is, so I suspect we’ll start to see a bit of a bearish continuation. However, if market participants decide to push this market higher, I’m not going to argue, I’ll just follow prices because that’s all you can do in a market that’s completely disconnected from reality.

Video of the S&P 500 weekly forecast for the week of 08.08.22

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

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