S&P 500 Price Forecast – Stock Markets Continue to See Negative Pressure

S&P 500 Technical Analysis

The S&P 500 initially tried to rally a bit during the trading session on Thursday in early-morning futures trading but has turned around quite significantly. Breaking down below the 3700 level shows that we are going to continue to see a lot of negativity. At this point, if we break down below the bottom of the candlestick, it’s likely that we could go to the 3600 level. In general, I think this is a market that will continue to punish positivity but given enough time we will get some type of bounce.

This is a market that will continue to face a lot of headwinds, and furthermore, we have the options expiration on Friday, so that could cause quite a bit of negativity and volatility as well. At this point, waiting for some type of rally is what I will be doing, and I will be shorting the market again. It does look like we are in the midst of a significant selloff that is only going to accelerate, so at this point, it is only a market that can sell off.

All things being equal, it would take a huge shift in the attitude of the Federal Reserve for a longer-term rally to show up, and that is not something that I would anticipate any time soon. At this point, we will continue to see downward pressure, but we are getting a little overextended so a relief rally is a real threat. I look at it as an opportunity at higher levels. It’s not until we break above the 50 Day EMA at the very least that I would consider going in the other direction.

US Stock Market Forecast Video for 17.06.22

For a look at all of today’s economic events, check out our economic calendar.