S&P 500 Technical Analysis
The S&P 500 rallied a bit in Monday’s trading session, but it still looks like we’re pretty soft. At this point, I’m more than willing to start shorting this market if we get some type of rally, but I’d also like to see some exhaustion in the process. That doesn’t mean we’re going to drastically collapse, and that doesn’t mean we can’t recover significantly in the near term. That being said, the 4100 level is starting a major resistance that the market will most likely have a lot of trouble with.
If we break below the Friday candlestick lows, that would of course also be very negative, as we were broken below the hammer. Breaking the bottom of a hammer is of course a very negative turn of events, opening up even more selling pressure. The 50-day EMA is reaching the previous resistance barrier, so everything is in place for a nice selling opportunity on each rally.
The Federal Reserve continues to see the need to tighten monetary policy, and of course Wall Street is worried about not receiving a market offer due to the “Federal Reserve put”. Now that there is less “cheap money”, Wall Street has to focus on things like earnings, which of course are miserable at the moment and the forecast has been much worse. Also, if we continue to see a lot of inflation and even the possibility of stagflation, there is really nothing to think about the possibility of an upside right now.
US stock market forecast video from 24.05.22
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