S&P 500 Weekly Price Forecast – stock markets pulled back for the week
The S&P 500 pulled back during the week as the 2900 level seems to be a bit too expensive. That makes a lot of sense though, because the market has been grinding higher for so long. I think at this point it’s obvious that the market probably needs to pullback a little bit to find value. When you look at the shorter-term charts, that’s clearly been the case and of course there are plenty of reasons to worry about trade tariffs and the like as the US and China continue to exacerbate the situation. The market should be support underneath though, especially near the 2800 level. There’s a nice uptrend line at the bottom of the channel, and I think it will continue to attract a lot of technical buying.
Your capital is at risk
I think at this point the market is simply looking to reset itself, and I think that the value hunters will certainly be ready to fall in line. If we were to break down below the 2800 level, that would be a very ominous sign at that point, which could send the sellers into push towards the 2700 level underneath. That would almost undoubtedly move right along with headlines coming out of either Washington or Beijing. I think the next couple of weeks could be a bit negative, but I’m not looking for anything drastic to happen to the stock markets overall. The US is still where everybody wants to put their money right now.