S&P 500 Price Forecast – S&P 500 Futures Pulled Back

S&P 500 Technical Analysis

The S&P 500 has pulled back just a bit during the trading session on Monday as the futures market continues to show significant volatility. By pulling back the way we have, it does make a certain amount of sense that we would continue the overall downtrend. After all, there are still plenty of concerns out there when it comes to inflation, a slowing economy, and of course contagion from other markets. Large funds are having to liquidate other positions in order to cover losses, therefore, it has a bit of a “knock-on effect” in general.

At the 4100 level, I would anticipate seeing a lot of resistance that extends all the way to the 4150. After that, we have a lot of noise all the way to the 4300 level, where the 50 Day EMA is currently trading through. In other words, we have a lot of potential resistance that we have to work through in order to change the overall trend, so quite frankly I just do not have a scenario in which I would be willing to buy this market anytime soon. On the downside, we could go looking to the 3900 level rather quickly, which offered a bit of support previously.

Breaking down through the hammer that sits just below there would open up the floodgates to even lower pricing, and quite frankly at this point not of that would surprise me. It should be noted that the Friday candlestick was rather bullish, but it was with relatively low volume and very likely more or less a “short covering rally” heading into the weekend. Volatility is the only thing you can count on.

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