S&P 500 Price Forecast – Stock Markets Continue to Show Negativity

US Stock Market Forecast Video for 07.12.22

S&P 500 Technical Analysis

The S&P 500 has seen the E-mini contract fall during the trading session again on Tuesday as the negativity continues to be a major factor. The 3950 level is now the short-term support, and we also have a 50-Day EMA coming into the same area at the same time. Because of this, it looks like we are little bit negative, but whether or not we are going to fall apart is a completely different question. That being said, I will be paying close attention to that 50-Day EMA to get a feel on what happens next.

On the other hand, if we turn around and break above the 200-Day EMA, we will more likely than not test the downtrend line that I have drawn on the chart. Breaking above that would obviously be very bullish and open up the E-mini contract to go looking toward the 4200 level. Having said that, there are a lot of negatives out there that could continue to come into the picture and cause major issues.

I suspect that we are going to have a very volatile few weeks heading to the end of the year, and therefore I think you will start to see more erratic moves than anything else. That being said, the market is likely to continue to see the need to be very cautious with your position size, mainly due to the fact that we could have sudden moves. Furthermore, we also have the Federal Reserve meeting next week that will have a major influence as to where we go next. Remember, Wall Street runs on liquidity, not so much anything else.

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