S&P 500 Technical Analysis
The S&P 500 traded back and forth in relatively tight trading on Tuesday as we pay close attention to the 4300 level. The 4300 level is an area that has been significant resistance before, so it makes sense that we continue to seeing this offer a bit of a headache for traders. If we can close above that on a daily candlestick, the market is likely to go much higher. That being said, there are a lot of things to worry about, not the least of which is that earnings season is underway, and that can cause a lot of noise.
The Federal Reserve is shouting from the sidelines that it’s serious about tightening, while Wall Street continues to believe it’s not. As long as this situation continues, it will be interesting to see how volatility plays out, as a tightening by the Federal Reserve is generally against the value of stocks. If Wall Street suddenly believes them, we could see a major blackout. On the other hand, if the Federal Reserve were to capitulate, it could send the markets a little higher. At this point, I think Wall Street has gotten a bit ahead of itself, but full disclosure here, I also said last week.
The 200-day EMA below should offer support, and if we can break down there, it is likely that we could go down to the 50-day EMA. On the other hand, if we break higher, we might be looking at the 4450 level.
Video of the US stock market forecast from 17.08.22
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