S&P 500 Forecast – S&P 500 Attempts to Recover

Christopher Lewis
Published: Apr 16, 2024, 13:01 GMT+00:00

Wall Street looks as if it is trying to recover, but only time will tell as we are watching 5100 above for a signal.

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S&P 500 Technical Analysis

We saw the S&P 500 initially continue its fall in the early overnight hours on Tuesday but then it has turned around to show signs of life again. The question now is whether or not we can find any type of follow through. We currently see the 50 day EMA at the 5,100 level and I think that could be a short term barrier. If we can break above there, then it’s very likely that the S&P 500 continues to see more upward momentum. The 5,000 level underneath is a large round psychologically significant figure that a lot of people will be paying attention to. So, it does make a certain amount of sense. It could be a bit of a floor in the market.

After all, we’ve been in an uptrend for what seems like a lifetime and a little bit of a pullback like we have seen over the last couple of days certainly makes sense. It’s also worth noting that the interest rates in America had been climbing again and that of course is something that Wall Street is very sensitive to. So, with that being said, it does make perfect sense that we’ve seen this little bit of a pullback.

Longer term, I still think we’re in an uptrend, but it’s not a huge stretch to say we needed this pullback. So, I don’t read too much into it more than the idea that it’s just normal behavior in a massive uptrend that has been trading very specifically in a 45 degree angle and just chugging along. We got a little bit of a wakeup call. So now we’ll see if we can recapture 5100, which would probably bring more money into the market. Keep in mind that we are in the midst of earning season so that has its influence as well

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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