S&P 500 Price Forecast – S&P 500 E-mini Contract Gives Up Early Gains

S&P 500 Technical Analysis

The S&P 500 initially tried to rally during the trading session on Friday, reaching towards the 50-Day EMA. That’s an area that has offered a significant amount of resistance, and therefore it’s likely that we will see that continue to be the case. In fact, the daily candlestick looks miserable, so it does look like we are ready to continue to see downward pressure. If we were to break down below the lows of the last couple of days, then we could drop down to the 3600 level. This is a market that has been in a downtrend for quite some time, and I think gravity finally came back into the picture.

If we were to break above the 50-Day EMA, then we could go looking to the 3900 level. Breaking above there then opens up the possibility of a move to the 4000 level, which is backed up by the 20-Day EMA. Ultimately, any signs of exhaustion will be jumped on, and I do think it’s probably only a matter of time before we test the lows again, especially considering how long the rally lasted, or perhaps how quickly it dissipated would be a better way to put it.

A lot of noise will be out there waiting to cause problems, therefore it’s likely that we will see difficulties going forward, especially as we have very little in the way of clarity when it comes to the future of the Federal Reserve, and of course the global economy slowing down. Keep in mind that the S&P 500 is full of international companies, so you cannot ignore other parts of the world beyond the US.

US Stock Market Forecast Video for 07.11.22

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