S&P 500 Weekly Price Forecast – Stock Markets Crater for the Week

The S&P 500 cratered this week, breaking down towards the 2400 level. At this point, the 2400 level looks to be a bit of a “floor” in the market, and we have had a vicious bounce on Friday. At this point, the market is likely to find sellers above, because quite frankly these types of moves are expected in what is a vicious bear market. At this point, Friday has shown a certain amount of strength, but you should keep in mind that the market will probably have a certain amount of short covering going into the weekend. After all, if the governments around the world do something over the weekend to help calm the market, you could wake up to a gap higher against the short position.

S&P 500 Video 16.03.20

Stock markets will continue to offer quite a bit of bearish pressure above, so I think at this point I would be a seller of the market unless something changes drastically. Granted, we have gone too far in too short of amount of time, but bear market rallies are quick in vicious, and also fall just as rapidly. I believe that the 200 week EMA is worth paying attention to, and at this point the inverted hammer that sits right around 2900 is also to be paid attention to as it could cause quite a bit of resistance. Even though we could get a nice bounce, I think it should be sold into. If we break down below the 2400 level, then it’s likely we go looking towards the 2350 level initially and then the 2200 level after that.

This article was originally posted on FX Empire


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