S&P 500 Hanging Onto Support for the Week

The S&P 500 initially fell during the course of the trading week, to reach down towards the 4140 handle. We have bounced from there to show signs of life, and it certainly suggests that we are trying to find some type of bottom in this area. That being said, I think the best that you are going to see here is going to be a sideways choppy range-bound reaction. All things being equal, I think this is a market that will try to turn things around but there is so much in the way of negativity out there that I think it is going to be difficult for the S&P 500 to simply take off to the upside.

S&P 500 Video 14.03.22

Breaking down below the bottom of the candlestick for the trading we could open up the possibility of a move down to the 4000 handle. The 4000 handle will have a certain amount of psychological importance attached to it, and therefore if we break down below that level, I think it would open up a massive move to lower levels. On the upside, the 4500 level is an area that we need to overcome in order to get fully bullish in this market. If we do make that move, the 4800 level would be the next target, and therefore an area of interest. Breaking above that would then lead to a “buy-and-hold” type of situation.

Keep in mind that the Federal Reserve meets next week, and I think that will probably be the most likely be the next catalyst as to where we go longer term. All things being equal, this is a market that I think continues to be noisy more than anything else.

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