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

S&P 500 Technical Analysis

The S&P 500 has struggled again during the trading session on Tuesday, as it looks like we are going to continue to reach the 3700 level, possibly even lower than that. With the Federal Reserve ready to continue tightening and the bond market going crazy, this is not the type of environment where fortunes are made to the upside. The 50 Day EMA sits at the 4000 level and is dropping, so this tells me we probably have further to go. Ultimately, this is a market that I have no interest in buying, and I do think that rallies continue to get sold into. That being said, anything is possible as it is probably only a matter of time before the “Plunge Protection Team” shows up.

If we were to break above the 50 Day EMA, that might be a bullish sign and open up the possibility of a move to 4200, which is where I would be much more interested in the longer-term efficacy of an uptrend. Until we can break above there with a sustainable daily close, I have no interest in going long of this market. That being said, we will get the occasional bounce, but those should be looked at as opportunities for those of you underwater to get out of the way. Longer-term, I think we will eventually see this market turnaround, but it needs coddling from the Federal Reserve, as it has had it over the last 13 years.

That being said, at midday we are starting to see a significant turnaround, so we may get a short-term pop in the market. That should end up being short-lived, as it is more or less “end of the month rebalancing.”

US Stock Market Forecast Video for 01.07.22

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