S&P 500 Price Predictions – Stock Markets Continue to Hammer


S&P 500 Technical Analysis

The S&P 500 first tried to rally a bit in Tuesday’s trading session, then turned around and fell quite significantly. At that time, the market fell below the 3800 level to show signs of weakness. The 3750 level was then tested, which is an area that has offered support over the past two days, but I think it’s probably only a matter of time before it breaks down and drifts even lower . The 3700 level is an area that needs significant support, and so I think it’s only a matter of time before we test and maybe even break down there.

If we turn around and recover, the 3950 level could be resistance, as it has been for the past two weeks. After that we have the 50 day EMA and the 3993 level and the drop. Ultimately, I think this is a market that will continue to see a lot of negativity in general, so I’m looking for signs of exhaustion to sell, much like we came into the futures market early in the day from tuesday.

Companies around the S&P 500 will have to depreciate their earnings and, of course, the Federal Reserve continues to tighten monetary policy, which will play feverishly against this index. That being the case, I have no interest in buying this market until something fundamentally changes, something that I don’t think will happen any time soon. Longer-term investors may view this as an opportunity to “add value,” but we have so much work against the stock market right now that I would be cautious.

Video of the US stock market forecast from 06.07.22

For an overview of all of today’s economic events, check out our economic calendar.


Comments are closed.