S&P 500 Weekly Price Forecast – S&P 500 Breakthrough Resistance Barrier

Weekly Technical Analysis for the S&P 500

The S&P 500 E-mini contract has gained quite a bit this week as speculation about the Federal Reserve relaxing monetary policy has increased. Despite the fact that the US inflation rate came in at 7.7% year-over-year, it is difficult to foresee a scenario in which the Federal Reserve will ease monetary policy. In light of this, we now find ourselves in a scenario where the market has seized the initiative.

Before it's all said and done, I predict there will be a lot of dissatisfied traders. I view this situation through the lens of a "bear market rally."

Remember that some of the most volatile sessions take place in the middle of a bear market because traders were waiting for an excuse to go long and found it over the trading week. Whether or not that holds true moving forward, that will be entirely different. In the end, it's feasible that we could swiftly return to the 3700 level if we were to reverse course and break down below the 3950 level. On the other hand, we might have a potential figure breakout if we were to break above the 4050 level, which is where the 50-Week EMA is now located.

In the end, it's still uncertain whether this market has just produced a small "double bottom."

Remembering that we have been in a decline channel for some time is also important. Ultimately, I believe that there will be a great deal of volatility.