S&P 500 Technical Analysis
The S&P 500 continues to falter in its bullish momentum, as we begin to see exhaustion again. This is the second day in a row that the sellers have stepped in and started to decline, suggesting that the downtrend is still intact. For that reason, I think it’s probably only a matter of time before we break down, possibly hitting the 3800 level. Corporate earnings are going to be worse this quarter than they were. were in the previous quarter, and worries about a recession and inflation both ways are weighing on the market. For this reason, I think it is more likely than not that we will see a lot of fear when it comes to the stock market.
If we were to reverse the trend and break above the highs of the last two days, that would obviously be a very good sign, but right now I just don’t see that happening. Quite frankly, this is a market with too much work against it, including rising US interest rates and tightening Federal Reserve.
The 3700 level below could be the target over the next few weeks, but it is clear to me that buying is very risky and worth doing, to say the least. There are people talking about “end of month rebalancing” but that seems to me to be over based on the volume boost we saw on Friday. With that, I continue to face short-term rallies as this market looks anemic to say the least.
Video of the US stock market forecast from 29.06.22
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