S&P 500 Price Forecast – Continued Bullish Pressure Into the Weekend

S&P 500 Technical Analysis

The S&P 500 has rallied significantly during the trading session on Friday to reach above the 4240 level. At this point, we are testing the shooting star from the previous session, so it will be interesting to see if this plays out. Ultimately, if we do break out above the top of that shooting star, I anticipate that at that point the market would more likely than not to look into the 4300 level in the E-mini contract, the most widely traded futures contract.

The 4300 level is a major level of resistance in the past, so I think a lot of people will be paying close attention to it. Quite frankly, this market is moving on the perception that the Federal Reserve is going to have to loosen monetary policy sooner than they say. At this point though, we need to pay close attention to the Federal Reserve statements and of course the bond market. It’s all going to come down to the latest whims of the market, which is almost always all over the place. With this, I think we have a scenario where the S&P 500 may have violent moves in both directions.

I wish I could tell you something more definitive, but right now the only thing I can say is it seems like the market is in a bit of hysteria, and now is more vulnerable than ever to some type of negative shock. If we break above the 4300 level, then it’s likely that we rally another 150 points. On the other hand, if we turn around and break down below the 4100 level, the market could start falling drastically.

US Stock Market Forecast Video for 15.08.22

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