S&P 500 Price Forecast – Market Continues to Attempt a Bounce

S&P 500 Technical Analysis

The S&P 500 has initially fallen during the early hours of the futures market, only to turn around and rally. By midday in the United States, the market had threatened the 3800 level, it now looks as if we are going to continue seeing this area pressured. If we can break above there, then it’s likely that we could pick up another 100 points. Nonetheless, we are very much in the midst of a consolidation area in that we are looking at a potential bottoming phase.

Whether or not that’s actually going to be the case is still open for debate, but it’s obvious that this is an area attracting a lot of inflows regardless. With that being the case, I am paying close attention to the price action over the next couple of days, and I recognize that any rally at this point in time is countertrend. The 4000 level is an area that I will be very interested in, especially if we see signs of exhaustion that I can start shorting. If that’s going to be the case, then it’s likely that the 50 Day EMA will come into the picture, offering even more dynamic resistance.

Alternatively, we could just break through the bottom of the most recent bounce and open up the possibility of a move to the 3500 level. There’s no real reason to think that it cannot happen, but I think more likely than not we need to work off a little bit of the froth from the selling pressure, so that might give a bit of a reprieve to the downtrend, perhaps even open up the possibility of a relief rally.

US Stock Market Forecast Video for 24.06.22

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