S&P 500 Price Forecast – Stock Market Gets a Bounce on Friday

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session, and now it looks like we are trying to get to the top of the overall short-term consolidation area. This means that we could go to the 3900 level, maybe even the 3950 level. All things being equal, the 50 Day EMA sits above and is dropping a bit and should cause a significant amount of “dynamic resistance.” Just above there, we also have to worry about the 4000 level, as it should be a significant barrier as well.

The 3800 level underneath should offer support, breaking down below there then opens up the possibility of a move down to the 3700 level, which is where we had bounced from multiple times now. All things being equal, this is a market that is probably a little oversold, and that might be part of what we are witnessing right now, the market trying to come back to some type of balance. Interest rates have cooled a bit in the United States, that seems to be helping the stock market overall. As long as that’s going to have that same correlation, then we may have the possibility of getting a nice little bounce here.

That being said, we are in the midst of earnings season, and that will have a significant influence on what happens in the stock market. After all, I have a hard time believing that it’s going to be a very happy occasion, so short-term rallies will more likely than not continue to show signs of exhaustion that we can start selling again. Ultimately, the Federal Reserve still runs the show.

US Stock Market Forecast Video for 18.07.22

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