S&P 500 Price Forecast – Stock Markets Plunge

S&P 500 Technical Analysis

The S&P 500 initially tried to rally during the trading session on Tuesday but has seen a bit of resistance in the 50-Day EMA, and then turned around to start falling. In fact, we are broken below the 4000 level in the E-mini contract to continue going lower. Ultimately, this is a market that goes looking for the 3900 level. Breaking down below that level could possibly be an opening to much lower levels.

Keep in mind that the market is likely to continue drifting lower from here because the Federal Reserve is most certainly going to tighten things up. As long as that’s the case, it’s likely that we will see equities pay as a result. At this point, I like the idea of fading short-term rallies at the first signs of exhaustion. The 200-Day EMA would probably be a major resistance barrier if we do try to rally, but quite frankly this is a market that I think continues to see a lot of negativity.

It’s not until we break above the 200-Day EMA that you can take any rally seriously. Ultimately, this is a market that I think could go down to the 3600 level, which is a major level to bounce from. The market continues to see a lot of noisy behavior, but that typically means negativity for markets. The candlestick of course looks rather rough, and like I said previously, that candlestick from Friday is a type of candlestick that almost never happens in a vacuum. Because of this, the idea of fading short-term rallies probably continues to be the best way going forward.

US Stock Market Forecast Video for 31.08.22

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