S&P 500 Weekly Price Forecast – Stock Markets Break Out Above Resistance

S&P 500 Weekly Technical Analysis

The S&P 500 has rallied significantly to break above the top of the inverted hammer during the previous week, as we have seen the jobs number suggesting that we are going to continue to see jobs added, and then of course average hourly earnings looking like they are softer than anticipated suggests that inflation may not be a major problem. I think that’s a little early to say right now, but obviously it looks like the S&P 500 wants to go higher over the longer term.

The 4600 level is the next target, and if we can break above there, then we can test the recent high again. This week is a strong sign of momentum, and the size of the candlestick certainly suggests that there should be plenty of value underneath. Underneath, the 4350 level could offer support as well, and if we break down below there then it’s likely that the market could go down to the 50-Week EMA.

Keep in mind that Monday is Labor Day in the United States, and a lot of people are going to be looking at this through the prism of iliquid trading, but furthermore we also have to pay close attention to the fact that people are coming back from summer holiday, and therefore it’s likely that we continue to see more liquidity coming into the market day by day, so we will get true moves over the next couple weeks, so we need to pay close attention to that.

Either way, this is a market you probably leave alone until Tuesday at the very least. If we do break above the 4625 level, then it’s likely we can look into the 4800 level.

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