S&P 500 Price Forecast – Stock Markets Take a Nosedive

S&P 500 Technical Analysis

The S&P 500 E-mini contract initially reached the 200-Day EMA during the trading session on Tuesday, but was repelled quite rapidly as CPI numbers in America came out much hotter than anticipated. In fact, the Core CPI number was double what was anticipated. Looking at the start, it appears that we are going to try to fill the small gap down at the 4000 level, but if we give that up, it’s likely that we go much lower. In this scenario, we could be looking at a real bloodbath.

It’s amazing to me that Wall Street found a way to talk themselves out of anything other than a “Fed pivot”, but they did. This has been like the 3^rd time they have done this, and it seems to be intentional. They are pumping up stocks in order to dump them off on retail traders. At this point, I would not be surprised at all to see this market make a fresh, new low, so I am fading short-term rallies, as that has worked for some time. Volatility is going to continue to be a major problem, at least for the next several weeks, if not months.

The next narrative will be that “we already knew that the Fed was going to raise interest rates by 75 basis points”, and therefore people will try to rally on that. Nonetheless, the economy is about to hit the ground hard, as all relevant data is showing. Every time this market rallies, I look at it as an opportunity to get short. I suspect that a lot of other people look at it the same way as well.

US Stock Market Forecast Video for 14.09.22

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