Consolidation Continues to Be the Norm for the S&P 500

The S&P 500 has been slightly positive during the trading session on Wednesday, but quite frankly that does not mean much considering that we are in the midst of the consolidation area that we have been in over the last four sessions. At the same time, Jerome Powell speaking in front of Congress, so that may have caused a little bit of intraday noise, but the markets are paying attention to so many different things at the same time that it makes a lot of sense that many of the participants would not be interested in risking their hard-earned capital to get involved.

S&P 500 Video 03.03.22

At this point, I am using the 4400 level, which is essentially the 200 Day EMA level, as a major resistance barrier. If we can break above there, then I think the S&P 500 has an opportunity to go looking towards the 4480 region. On the other hand, if we were to break down below the 4250 level, then it is likely that the market will go looking to test the lows that we had formed last week.

In the meantime, I think a lot of this comes down to earnings and outlook from major corporations, inflationary concerns, the Federal Reserve and its tightening policy, and of course the Ukraine/Russia war. There are so many things going on at the same time that it is difficult to juggle them all and assume that we are going to go higher. That being said, people were not even speaking about the fact that GDP in the United States is expected to slow as well, which is yet another reason to be skeptical.

For a look at all of today’s economic events, check out our economic calendar.