S&P 500 Price Forecast – Stock Market Recovers

S&P 500 Technical Analysis

The S&P 500 rallied on Friday as the jobs number came out slightly cooler than anticipated. This was preceded by hammer on Thursday, suggesting that somebody already knew something or Wall Street had already made up its mind. As we head into a 3 day weekend, a lot of people do not want to be short of the market, which is not overly surprising. That being said, if we were to turn around and break down below the hammer next week, that will open up quite a bit of selling pressure. I do believe this is a technical bounce, not necessarily something that is going to be changing the overall outlook of the market.

On rallies, I think signs of exhaustion will continue to get sold into, especially with the 50 Day EMA sitting at the 4070 level just above and tilting lower. With that in mind, it’s worth noting that the conditions in this market were oversold, so this technical bounce makes a lot of sense, especially considering that we formed a hammer right at the previous resistance barrier. A bit of “market memory” into the market if you will.

I don’t like stocks, I think it’s only a matter of time before we get some type of negative influence, but in the short term it looks like we may go a little bit higher. If we can break above the 50 Day EMA, then it’s possible that we could go looking to the 4200 level, which is right around where the 200 Day EMA currently resides.

US Stock Market Forecast Video for 05.09.22

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