S&P 500 Price Forecast – Stock Markets Continue to Attempt Recovery


S&P 500 Technical Analysis

The S&P 500 is trying to reach the recent low at 3900, and I suspect we’re probably having a bit of trouble ahead. Also, we have the US jobs numbers on Friday, so I expect that to be loud, to say the least. I think it’s probably only a matter of time before exhaustion hits the market, so I think a selling opportunity will likely present itself sooner rather than later.

Wall Street fools are always trying to convince themselves that the Federal Reserve is going to do something to protect the stock market, but frankly, every time they think it will, reality kicks in and brings the market down. The 50-day EMA is around the 4000 level, so I think that’s about as high as this market can go. On the other hand, if we turn around and fall below the 3850 level, that would also be a sign of negativity.

All things being equal, we are in a downtrend for a good reason, not the least of which would be interest rate issues, but we also have to worry about earnings and of course inflation issues. Ultimately, this is a market that is likely preparing for a shorting opportunity given enough time, but we need to see signs of exhaustion to get shorted again. Ultimately, this is a market that I think will eventually try to retest the bottom. However, if we were to break above level 4000, it would definitely make a statement.

Video of the US stock market forecast from 08.07.22

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