S&P 500 Price Forecast – S&P 500 Takes a Nosedive After Jerome Powell Speech

S&P 500 Technical Analysis

The S&P 500 fell down to the 4100 level rather quickly in the E-mini contract, threatening the 50 Day EMA on Friday. This is a market that has been living in fantasy land for a while, and it now appears that perhaps the message has finally gotten out that the Federal Reserve is not going to babysit Wall Street, at least not for the time being. Inflation is ripping higher all year, and Wall Street is looking for a bailout.

We are sitting on top of the 50 Day EMA, which is an area that would attract a lot of attention, as it is so widely followed by technical analysts. If we break down below there, then it opens up a move down to the 4000 level, an area that is a large, round, psychologically significant figure. It’s also an area that had previously been resistance, so I think there will be a bit of a fight on our hands there.

After that, we are more likely than not going to go down to test the lows again. That being said, it does not mean that we get there overnight, and therefore it could be more of a process. Wall Street generally finds some type of way to be bullish, but it does not look like they are doing it this time.

It looks as if we are rolling over for a continuation of the longer term downtrend, after a massive spike higher. I’m already listening to the CNBC talking about how we have still seen a massive rally as of way. It’s probably worth pointing out that we had seen more of a selloff before this bounce.

US Stock Market Forecast Video for 29.08.22

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