S&P 500 Futures Find Support

S&P 500 Technical Analysis

The S&P 500 has shown itself to be somewhat supported after initially falling in the futures market on Monday. By doing so, it does suggest that the market is going to pay close attention to the 200 Day EMA as a potential trend-defining indicator. However, if we were to break down below the bottom of the candlestick for the trading session, then it opens up fresh selling pressure. At that point, I would anticipate that the S&P 500 could drop to the 4300 level in the futures market, perhaps even the 4200 level.

On the upside, the 50 Day EMA sits at the 4450 handle, but is curling a little bit lower. If we can break above there, then it is possible that the market continues to go much higher, after we threaten the 4500 level. That being said, there are a lot of concerns when it comes to interest rates rising quickly, and therefore that will continue to put a little bit of weight around the neck of the market. That being said, the Federal Reserve suddenly changing its attitude could potentially cause things to shoot straight up in the air, but that does not look likely at this point.

A retest of the lows would make quite a bit of sense, as markets typically do that. However, we will have to pay close attention to the Federal Reserve announcements and statements. I expect plenty of volatility, so I would be cautious but right now it looks like the market is trying to hang around between current pricing and the 50 Day EMA. Once we break out of this range, then we could get a bigger move.

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