Advertisement
Advertisement

S&P 500 Price Forecast – S&P 500 Continues to Respect the Previous Consolidation Area

By:
Christopher Lewis
Published: Jun 29, 2022, 15:33 UTC

The S&P 500 has fallen a bit during the trading session on Wednesday to dip into the previous consolidation area. As we are testing the top of that rectangle, we are starting to see a little bit of support.

S&P 500 FX Empire

In this article:

S&P 500 Technical Analysis

The S&P 500 has pulled back a bit during the trading session on Wednesday to break to the top of the previous consolidation area. At this point, the market is trying to stabilize, but I also recognize that we are very much in a negative trend, so therefore it’s likely we are going to continue to see sellers on rallies. The candlestick from the previous session was rather ugly, so it will be interesting to see what the market does next, and whether or not there is significant follow-through.

If we break down below the 3800 level, then it’s likely that the market could go to the 3700 level. Breaking down below that level could open up the possibility of a move much lower than that, perhaps reaching the 3500 level. On the other hand, if we were to turn around and take out the highs from both Monday and Tuesday, then it could open up the possibility of a move to the 50 Day EMA, which is currently at the 4020 level. The 50 Day EMA should offer dynamic resistance as well, and as long as the Federal Reserve is going to continue to insist on tightening monetary policy, it’s going to work against the value of the stock market.

Wall Street is just now starting to price and the idea of write-downs on corporate statements, and of course a potential recession. Because of this, I believe that we will continue to “fade all rallies going forward.”

US Stock Market Forecast Video for 30.06.22

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement