S&P 500 Price Forecast – Stock Markets Get Hammered Again on Monday

The S&P 500 has fallen off of a cliff yet again during the day on Monday as we continue to see stocks get punished on the freak out that is going on around the world due to the yields in America rising. At this point in time, we are still very much in an uptrend but obviously struggling. With that in mind, I believe it is probably only a matter of time before we see some type of bounce, because quite frankly the market has overreacted. Having said that, that is exactly what the market does: overreacted.

S&P 500 Video 11.01.22

The 4500 level should be a major battlefield and I think a lot of buyers would come in to defend that area. In the short term, we may continue to see a lot of noisy behavior, and perhaps downward pressure. All things been equal, this is a market that I think continues to see a lot of fear, and of course as most decisions on the stock markets are made by computers, do not expect any type of common sense to come into the picture. That being said, if we break down below the 4500 level, I will then be a buyer of puts, because quite frankly that is such a major breakdown that I would have to pay close attention to it.

Ultimately, I do think that the S&P 500 finds its legs but obviously it is difficult and dangerous to do anything to the long side at the moment. You need to let the market stabilize for a couple of days and then perhaps get involved. Between now and then, you are simply gambling if you are trying to pick the bottom.

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