S&P 500 Weekly Price Forecast – Stock markets in resistance

The S&P 500 continues to try to break out but has failed so far. The 2800 level continues to offer an extreme amount of resistance, and at this point it looks like it isn’t ready to give up. I believe that if we pull back from here, it’s likely that we could go as low as 2750, maybe even 2700 after that. On the other side, if we can break above the 2820 handle, then I think the market could break out to the 2900 level given enough time.

S&P 500 Video 25.02.19

Keep in mind that the Federal Reserve does look a bit soft, but now we have to worry about trade talks and the like. If that’s going to be the case, it’s very likely that the markets will be very choppy in the short term, and we are a bit stretched at this point. A pullback would make quite a bit of sense, perhaps trying to build up a significant amount of momentum to finally reach higher levels. That being said, one thing you should pay attention to is the tenacity of the buyers. On the negative side, volume is shrinking and that is never a good sign. I think the next couple of weeks will produce some fireworks in the S&P 500, with a couple of very important levels in the form of 2800 above, and 2700 below being featured. If we can close above the 2820 handle, then it’s more of a buy-and-hold scenario. Until then you’re going to need to be very cautious.

Please let us know what you think in the comments below