S&P 500 Price Forecast – Stock Markets Run Into Resistance

US Stock Market Forecast Video for 06.12.22

S&P 500 Technical Analysis

The S&P 500 E-mini contract has started out the week on its back foot, as we have been testing a major downtrend line. Because of this, the market will continue to see a lot of noisy behavior, especially as the 200-Day EMA sits just below. If we break down below the 200-Day EMA, then it is likely that we would see even further negativity, perhaps opening up the possibility of a move down to the 3900 level, which is basically where the 50-Day EMA currently resides.

In the middle of next week, we get the Federal Reserve meeting and that of course will have a major influence on what the market does. It seems as if each rally based upon what Powell may or may not say has less length to them, so it’s probably worth keeping that in mind as well. In other words, I wonder whether or not this is a market that is finally paying attention to the actual economy as well. It’s not all about “Poppa Powell”, and whether or not he’s handing out candy.

If we were to break above the highs from last week, it’s possible that we could go looking to the 4200 level. The 4200 level courses is an area that has a certain amount of psychology attached to it, and it obviously has a lot of previous action as well. Keep in mind that we are at the end of the year, therefore I think it makes quite a bit of sense that we have seen the fabled “Santa Claus rally” enter. Whether or not it last for any length of time is a completely different question.

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