S&P Weekly Price Forecast – S&P 500 Continues to Look Strong Despite Dip

S&P 500 Weekly Technical Analysis

The S&P 500 has been very volatile during the week, but we are making fresh highs. The consumer price index numbers, as well as the producers price index numbers, have been all over the place in America, so it’s caused a lot of chaos. But at the end of the week, it looks like we are going to close much higher. With that being the case, I think you’ve got a situation where you have to look at this through the prism of a market that quite frankly, you cannot short.

That certainly seems to be what people thought on Friday as we started to recover. All things being equal, it looks like the 5500 level underneath should offer support right along with the 5300 level, and then again, the 5000 level. I have no interest in shorting the market. I think we are far too strong and quite frankly, it’s just the feedback loop that we are stuck in right now.

The S&P 500 is simply driven by momentum and the same handful of stocks as usual, which on Thursday we had seen a lot of selling due to those stocks losing. It just shows you how concentrated the market had gone. But Wall Street doesn’t learn until it crashes, and we aren’t there yet. So, I think we will continue to see more of the same, despite the fact that Thursday was rather scary for some people. The reality is, this is a market that is more likely than not going to go looking to the 5700 level above, and perhaps even higher than that if you give it enough time.

For a look at all of today’s economic events, check out our economic calendar.