S&P 500 Price Forecast – Stock Markets Continue to Recover

S&P 500 Technical Analysis

The S&P 500 has initially fallen during the trading session on Thursday but then turned around to show signs of life again in the E-mini contract and the underlying index. The mini contract looks as if it is ready to continue rallying, perhaps in a bid to break above the 4000 level. The 50-Day EMA currently sits at the 4055 level and is starting to slump. With this being the case, I think there is a certain amount of dynamic resistance above that will most certainly get sold into, but in the short term, it looks like we have the possibility of an attempt to break out.

On the downside, the 3900 level looks to be supported in this contract, and as long as we can stay above there I think we have a chance to stay afloat. A breakdown below that level could open up fresh selling, perhaps sending the contract down to the 3600 level over the longer term. The 3800 level between here and there of course could be a potential speedbump along the way.

Keep in mind that the Federal Reserve is going to remain very tight with monetary policy, so I don’t know how long this rally has, but it certainly looks as if we are seeing a bit of recovery from an oversold condition, something that can be quite powerful. In fact, some of the most vicious rallies are the ones that you see during bear markets. I think that’s what we are seeing here, so short-term traders will probably take advantage of this pop. Keep your position size reasonable, because it won’t take much to scare the market again.

US Stock Market Forecast Video for 09.09.22

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