S&P 500 Price Forecast – Stock Markets Continue to Threaten a Breakout

S&P 500 Technical Analysis

The S&P 500 initially fell during trading on Monday, but then turned around a rally again. By the middle of the afternoon, the market had hit the 200 Day EMA, sitting just below the crucial 4200 level. If the market were to break above the 4200 level, it opens up the possibility of a move to the 4300 level. However, keep in mind that Wednesday has the CPI number coming out of the United States, which will give traders a lot to think about when it comes to the inflationary picture.

The Federal Reserve does like to pay close attention to the Core CPI figure, and therefore a lot of people will put quite a bit of credence into this indicator, especially if it comes out hotter than anticipated. With that being the case, I think that we have a couple of days of walking on a thin line. That being said, if we were to turn on break below the hammer that formed on Friday, that could mean that the market is willing to dump stocks ahead of the number, something that I think is much more likely than most people realize.

After all, we do have a recession and there are a lot of concerns when it comes to inflation going forward. That does not necessarily mean that Wall Street has to price the market based upon reality, because quite frankly it’s made a career not doing that. However, we are most certainly an area where you can see a lot of technical resistance, so that all lines up quite nicely.

US Stock Market Forecast Video for 09.08.22

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