Previous week was all about energy. Saudi Arabia announced its decision to continue with its decreased oil production by 1 million barrels per month up to the end of this year, which brought back some negative sentiment on the market. Markets were trying to digest this information, considering that it might imply further increase in inflation rates. As oil prices reached $90/barrel energy stocks were gaining in strength. At the same time, technology stocks were put aside.
The S&P 500 started the previous week around the level of 4.537, but ended the week by reaching its lowest weekly level at 4.431. Technical analysis is showing that there is still space for a move toward the upside, as the market did not exhaust its potential. In this sense, the index might once again move toward the 4.500 short term resistance line in order to test it, but there is no indication on charts for a move toward the higher grounds. On the opposite side, at this moment on charts, there is a lower probability that the index might go lower from 4.450 level during the week ahead.
The S&P 500 started the previous week around the level of 4.537, but ended the week by reaching its lowest weekly level at 4.431. Technical analysis is showing that there is still space for a move toward the upside, as the market did not exhaust its potential. In this sense, the index might once again move toward the 4.500 short term resistance line in order to test it, but there is no indication on charts for a move toward the higher grounds. On the opposite side, at this moment on charts, there is a lower probability that the index might go lower from 4.450 level during the week ahead.
