S&P 500 Weekly Price Forecast – Stock Markets Reach Towards 50 Week EMA

The S&P 500 has rallied during the bulk of the week, digging deep into the shooting star that formed during the previous week. However, it was preceded by a couple of hammers, so at this point it looks like we are simply trying to carve out some type of range to decide where to go next. I would also direct you to look at the shooting star that formed 10 weeks ago, sitting at the 3000 level. The fact that we have rallied into that area it is likely that we will see a certain amount of selling pressure, especially as the 3000 level will cause a lot of psychological interest.

S&P 500 Video 11.05.20

Longer-term traders are probably going to have to wait for a break above the 3000 level in order to start buying, and then you are looking at what is likely to be a 400 point rally. However, if you are more bearish, then you might be willing to take on a shorting opportunity right away. That being said, the 3000 level certainly makes a quick way to determine whether or not the trend continues.

I get a lot of emails about why the stock market continues to go higher despite the fact that the economy has taken such a hit, and the reality is that as things stand right now, Wall Street believes that the economy will turn around quite rapidly. That being said, it seems to be very unlikely to do so, and it is probably only a matter of time before people look beyond the Federal Reserve liquidity measures and start focusing on the fundamentals. However, you simply cannot fight what is going on just despite it.