S&P 500 Gives Up Initial Gains

The S&P 500 has initially rallied during the trading session on Friday to show signs of recovery but has given up gains rather quickly to turn things around. The inverted hammer that you see on the chart is likely to contradict the hammer that formed during the trading session on Thursday, suggesting that we are going to go back and forth right around the 4250 level in the short term. The noisy behavior is probably to be expected because we have so many different things happening at the same time.

S&P 500 Video 14.03.22

When you look at this chart, you can see that we have been falling for a while, and now we have a significant decision to make as to where we are going for a longer-term move. If we can break above the 200 Day EMA above, then the market could go much higher. On the other hand, if we break down below the 4100 level, this market will come undone.

Keep in mind that the next week has a lot of potential news flow that could come into the picture. After all, we have to worry about the Federal Reserve meeting and the statement that goes along with it. Traders will worry about whether or not the Federal Reserve is going to become overly hawkish, or at least stay that way. Yes, the Russians have invaded Ukraine and therefore people might be looking for them to pull back a bit as far as attitude is concerned, but there is no way to guarantee that as we have such massive inflation in the US. In other words, buckle up, things are about to get messy again.

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