S&P 500 Price Forecast – Stock Markets Recover From Extreme Oversold Conditions

US Stock Market Forecast Video for 22.12.22

S&P 500 Technical Analysis

The S&P 500 has rallied a bit in the E-mini contract during the trading session on Wednesday, as it looks like we are heading toward the 50-Day EMA. Ultimately, this is a market that I think is trying to figure out some type of equilibrium between now and the end of the year. After all, this is the worst time a year for liquidity, and of course there have been a lot of concerns recently. Jerome Powell has made sure to reiterate the idea that the Federal Reserve was going to stay tight for quite some time, despite the fact that Wall Street was looking for a handout.

If we break down below the hammer from the Tuesday session, that could represent a big flush lower, but I don’t think that’s going to happen right away. Quite frankly, I believe this is a market that has been overdone, and we just simply are bouncing until we get an exhaustion candle. On that exhaustion candle, I will not hesitate to start selling, because quite frankly I think that would be an extremely bearish sign. Ultimately, I do think that we go lower, because quite frankly we have a huge recession coming, and it’s apparent that Wall Street is finally starting to agree with all of the projections.

With this, we would have to take out the top of the 200 day EMA at the very least to consider this a potential market worth buying. I just don’t see how that happens; therefore I think we’ve got a situation where you are waiting for an opportunity to go short again. That might be in January, it may be tomorrow, you just don’t know.

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