S&P 500 Pierces Resistance

S&P 500 Technical Analysis

The S&P 500 has rallied during the trading session on Wednesday to break above the double top that I had mentioned previously. At this point, the market looks as if it is trying to pull back just a bit, and we could get a pullback to the 4500 level if exhaustion starts to set in. If that were the case, it is likely that there will be plenty of value hunters willing to come back into the marketplace. The uptrend line underneath and the 50 Day EMA both come into the picture for potential support on a pullback.

If we do break above the range during the trading session on Wednesday, that would only add more fuel to the fire and therefore the market could go looking towards the 4725 handle. All things being equal, this is a market that has gone rather parabolic as of late, and therefore a pullback would be expected. Whether or not that happens is a completely different question, but it does not necessarily mean that you should be shorting the market.

At this point, it is obvious that Wall Street believes that the Federal Reserve is not going to become aggressively tight with monetary policy, while the bond market does suspect that they will. In other words, the market is going to have to make a decision between the two opinions, and once we get that decision, it is going to be massive. Because of this, you cannot do anything rash, nor can you put huge positions on in this type of environment. Ultimately, stock indices are meant to go higher over the longer term.

S&P 500 Video 30.03.22

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