S&P 500 Weekly Price Forecast – S&P 500 Defies Gravity Again

Weekly Technical Analysis for the S&P 500

Although the S&P 500 E-mini contract has gained ground over the last week, I believe the market is now attempting to persuade itself that the Federal Reserve will intervene and rescue it. If there isnt an immediate and big selling, I believe Jerome Powell will do all in his power to dispel this misconception. We have a whole generation of traders and money managers that have never dealt with inflation, so whether or not Wall Street decides to pay heed to them is an entirely other issue.

They only know that "Uncle Jerome" would intervene to rescue them if their losses get too severe.

The size of the candlestick is pretty amazing, and reaching the 4200 level would mean removing the inverted hammer from around two months ago. The fundamentals just do not support the market moving higher, but pricing is the one factor that cannot be contested. That would be a tremendously bullish move.

On the other side, if we were to drop below the candlestick's base, we would put the 3900 level in danger and may even allow for a drop below the 3800 level. Following that, there is the 200-Week EMA, which is located just above the 3700 level and where there is still a lot of support. Alternatively, things may become nasty if we collapse down there. In such case, we would see a highly unfavorable action.