S&P 500 Weekly Price Forecast – Stock Markets Continue to Look Threatened

Weekly Technical Analysis for the S&P 500

The S&P 500 attempted to rise during the week, but it gave up a significant portion of the gain as we ultimately formed an inverted hammer. It goes without saying that the inverted hammer, which is right below the 200-Week in May, merits notice as well. The 3700 level was a previously supported location, which is maybe even more significant, so it would make sense that it would have a lot of inherent resistance.

The week's inverted hammer shape does indicate that we are prepared to fall lower. It is conceivable that we would seek for the 3500 level if we were to collapse below the inverted hammer's bottom. You should be paying attention to the 3500 level since it is a large, rounded number with psychological significance that undoubtedly will generate a lot of media attention.

Alternately, the market is likely to go for the 4000 level if we were to break over the top of the inverted hammer. Although I don't believe that occurs, it is something to be aware of. In the end, the Federal Reserve's mishandling of the stock market is a problem, and it is clear that they are not prepared to continue tightening monetary policy. You will need to keep an eye on the interest rate sector and bond market to pay special attention to where we should go next at this point since it's possible that increasing interest rates will continue to act against the stock market.