S&P 500 Price Forecast – Stock Markets Continue to Sit Just Above 50-Day EMA
US Stock Market Forecast Video for 12.12.22
S&P 500 Technical Analysis
The S&P 500 has gone back and forth during the course of the trading session on Friday, as we continue to hang about the 50-Day EMA level, and the 3950 area. Ultimately, we are between the 50-Day EMA, and the 200-Day EMA, and that typically means that we are going to see a lot of noisy behavior. Furthermore, we have a downtrend line just above that could cause a significant amount of resistance. In that scenario, we probably have a situation where rallies will continue to be faded, especially as we are heading toward the central bank meeting next week.
Speaking of the Federal Reserve meeting next week, a lot of people will be looking at the statement for some type of guide as to where we go next. People continue to look at this through the prism of potential illiquid markets as well, so we may get a sudden move on Wednesday of next week, and then very little after that. On the other hand, if we get some type of fundamental announcement that moves the markets, we could see a bigger move in the market as we can see a lot of people grasping for liquidity.
Looking at this chart, I think we are about to make a bigger move, but the question is whether or not it can happen between now and the end of the year. Ultimately, this is a market that I think continues to see a lot of difficulties, and choppy behavior. Ultimately, I think we will make a bigger decision, but right now it looks like we don’t really have any certainty.
For a look at all of today’s economic events, check out our economic calendar.