S&P 500 Price Forecast – S&P 500 Continues to Consolidate

S&P 500 Technical Analysis

The S&P 500 has rallied during the Monday trading session in the futures market, as the 4100 level has offered reasonable support. That being said, the market is very likely to continue seeing resistance just above the 50 Day EMA. The market has been all over the place during the last couple of weeks, so this should not be a huge surprise that we find ourselves stuck at the moment, especially as we do not have clarity on earnings and the overall situation on the ground when it comes to the economy.

Yes, things look bad but at the end of the day, Wall Street doesn’t care about the real economy, it’s about liquidity issues and what the Federal Reserve is going to do. Somebody somewhere is starting the narrative of potential stimulus, which is the only thing that Wall Street seems to care about. I anticipate that we will see an attempt to try to gain traction between now and Friday when we get the next inflationary number coming out.

If we break above the 50 Day EMA, then it’s likely that the S&P 500 futures market will try to reach the 4300 level. That does not mean that it will be easy, and it certainly doesn’t necessarily mean that there will be an occasional pullback, assuming we even get that moved.

On the downside, if we were to break below the 4070 level, then we could get a move lower, perhaps reaching the 4000 level over the next couple of days. That being said, I suspect we are going to see more sideways grinds than anything else over the next couple of days. If you have a range-bound system, it might be time to use it.

US Stock Market Forecast Video for 07.06.22

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