S&P 500 Price Forecast – Stock Markets Dip but Recover

The S&P 500 has initially fallen during the trading session on Thursday to reach down towards the 50 day EMA. By doing so, the market looks as if it is trying to find its footing and therefore it will be interesting to see how this plays out. I do think that given enough time we will probably see the marketplace try to recover, especially considering that the job summer comes out on Friday and that does tend to throw things around a bit.

S&P 500 Video 07.01.22

Ultimately, I think that this is a market that will eventually find its way higher, despite the fact that the Federal Reserve is looking to raise interest rates this coming year. There is already the pushback from certain traders suggesting that perhaps the Fed will not be able to do any of this, and that it is essentially nonsense. The 50 day EMA of course attracts a lot of attention, so should not be a huge surprise to see that we are getting a little bit of a bounce here, especially considering we are right around the 4700 level.

We are still very much in an uptrend, despite the fact that the Wednesday candlestick was so horrific. That something that you should probably keep in the back of your mind regardless and therefore I think ultimately that is what we are trading on. To the upside, the 4800 level obviously is significant resistance but if we need to close above that on a daily chart, we more than likely go looking towards the 5000 level over the next several weeks, if not months.

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