Stock Market Forms Shooting Star for the Week

S&P 500 Weekly Technical Analysis

During the week, the S&P 500 surged and even broke above a huge double top before turning around and showing indications of trepidation. The formation of the shooting star suggests that the S&P 500 is about to start tumbling again. If it does, the 4200 level could be a goal due to the fact that it has previously provided some assistance.

Keep in mind that the stock market has nothing to do with anything other than liquidity and the next move by the Federal Reserve. It's been so long since we've concentrated on the economy that it's tough to recall what it was like to trade based on profitability or growth. With that in mind, we'll have to wait and see what happens with the Fed funds futures rate, because if it continues to rise or remain elevated, equities will suffer. Based on the inflationary challenges, there are doubts about whether the Federal Reserve will continue to tighten. At the end of the day, the only thing that matters to Wall Street is cheap money.

It's possible that if we spin around and break above the top of the shooting star, we'll be able to reach the 4800 level. Following a break above that level, a "buy-and-hold" scenario emerges, most likely shortly after the Federal Reserve caves in to Wall Street. Volatility is probably the only thing you can bank on, in my opinion.