S&P 500 Price Forecast – S&P 500 E-mini Tries to Bounce

S&P 500 Technical Analysis

The S&P 500 has bounced a bit during the trading session on Monday, as the 3600 level has offered a significant amount of psychological support. By doing so, it looks as if the market is trying to save itself, and it may have gotten a little bit of help via bad economic numbers. The market seems to be in a “bad news is good news” type of situation again, as everybody is standing around and waiting for the Federal Reserve to come and save them.

The ISM Manufacturing PMI figures came out at 50.9, as opposed to the projected 52.5. This gave traders hope that the Federal Reserve would start to rethink its position. Here’s a hint: they are not going to.

Because of this, it’s very likely that we will see a bit of selling pressure given enough time, as the situation is extraordinarily fragile, and it would take very little to have selling come back into this market. That doesn’t necessarily mean that I just start shorting readily, but at the first signs of exhaustion could get people going short yet again. Looking at the chart, the candlestick is rather impressive, but I do think that it is only a short-term burst, and I do believe that we break down below the 3600 level given enough time.

Once that happens, it opens up the possibility of a move down to the 3500 level. The 50-Day EMA sits at the 3927 level and is dropping quite rapidly. Because of this, I think it’s probably only a matter of time before we see plenty of resistance as well. Ultimately, fading rallies continues to be the way forward.

US Stock Market Forecast Video for 04.10.22

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