S&P 500 Price Forecast – The S&P 500 Has Another Rough Day

S&P 500 Technical Analysis

The S&P 500 has fallen significantly during the trading session on Friday as we have pulled back from the 50 Day EMA. Looking at this chart, it looks like we are trying to break down below the 4100 level, and perhaps if we can go below there it’s likely that we fall from there. All things being equal, the S&P 500 will continue to see a lot downward pressure, as there are a lot of concerns when it comes to the overall economy, and of course the reopening.

The 50 Day EMA is a technical indicator that a lot of people pay attention to, but if we were to break down below the 4071 level, then it opens up even more selling before we go down to the 4000 level, possibly even the 3900 level after that. All things being equal, this is a rally that was needed after a massive selloff. If we break above the 50 Day EMA, then it’s possible that we could make a move to the 4300 level, an area where we have seen a lot of resistance previously.

The size of the candlestick does suggest that there will be a bit of follow-through, and it’s worth noting that people were not willing to hang onto the contract heading into the weekend. This sets up for a potential negative week ahead, so I’ll be watching that little miniature double bottom underneath with great interest. Regardless, I think that we are looking at quite a bit of volatility just that, and I think that it will noisy to say the least, but that’s nothing new for this market.

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