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S&P 500 Futures Continue to Consolidate

By:
Christopher Lewis
Published: Apr 19, 2022, 15:57 UTC

The S&P 500 futures market rallied a bit during the trading session on Tuesday to test the 50 Day EMA.

S&P 500 Futures Continue to Consolidate

In this article:

S&P 500 Technical Analysis

The S&P 500 pulled back a little bit during the trading session on Tuesday to show signs of weakness but then turned around to rally and test the 50 Day EMA. Ultimately, if we can break above the 50 Day EMA it is likely that we go looking to reach the 4500 level. The market breaking above the 4500 level opens up the possibility of a move to the 4600 level, but at this point, it is likely to see that level as difficult to get to.

Pay close attention to the interest rate situation in America, which will continue to be a major problem, as we have seen so much in the way of a headwind for the stock markets. At best, the market is likely to see a lot of noisy behavior, so keep that in the back of your mind. I think that if we break down below the hammer from the Monday session, then we could break down below the 4350 level, to open up the 4300 level, and then eventually the 4100 level.

There are plenty of negative situations out there that continue to work against a strengthened stock market, so it does make a certain amount of sense that we will continue to see a lot of selling pressure. I think that if you see signs of exhaustion, you are either going to be likely to be buying puts, or you are going to have to take profits if you are “long-only.” The market is very noisy at best, and therefore you need to be cautious about the volatility and keep your position size relatively small.

US Stock Market Forecast Video for 20.04.22

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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