S&P 500 Price Forecast – stock markets break down to kick off Wednesday
The S&P 500 broke down significantly during the trading session on Wednesday, slicing through the 2850 handle. That’s a very negative turn of events, and it looks like we may continue to go lower. Beyond that, there was an uptrend line that got sliced through, so this looks very negative and it seems that the sellers are really starting to take control of this market. With that being the case, I think that higher bond yields and global concerns are finally starting to have a significant effect. I think it’s not until we break above the 2865 handle that the “all clear” is signal, so at this point it’s probably best to short this market on signs of exhaustion. The 2800 level underneath is a major figure on longer-term charts as well, so I would expect a bit of support at that level.
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At this point, if you believe in the longer-term uptrend, you may just want to stand on the sidelines and wait for signs of stability. We have just broken below the bottom of a couple of hammers, and that’s not good. Because of this, I think that the selling pressure will more than likely continue. Pay attention to the US dollar, that could also have an effect on where this market goes as yields continue to rise, that has people buying treasuries. In general, I think we are one major geopolitical issue away from seeing a bit of a break down from here. However, we are still technically in a bit of an uptrend. Overall, I think that the market seems to be very shaky to say the least that I think we will continue to see that be the case for some time.
