S&P 500 Price Forecast – The Stock Market Continues to See Sellers
S&P 500 Technical Analysis
The S&P 500 initially tried to rally during the trading session on Friday but gave back gains as we go crashing towards the lows again. Quite frankly, this is a market that looks like it is ready to break down quite drastically, perhaps down to the 3800 level. Keep in mind that the Friday session is also an option expiration, so it is going to make things crazy and volatile. The market will continue to be very volatile, but at this point, I think you have to look at every rally as a potential selling opportunity in the futures market. The market is going to continue to be difficult to manage, so you need to keep your position size reasonable.
The 4100 level above is going to be a major barrier, assuming that we can even get there. Quite frankly, I would be surprised if that happen, but it is something worth watching. The 3800 level is more likely than not to be targeted, perhaps even lower than that. We are on the precipice of something rather ugly, as the markets seemingly cannot find their own footing.
Unless the Federal Reserve changes its tune, the tightening monetary policy will continue to put pressure on this market. With the inflation rate the way it is, the Federal Reserve is essentially stuck. They have two choices at this point, either fight inflation and let the stock market get eviscerated, or save the financial markets and watch inflation roar. There is no good solution, and therefore we have difficult times ahead, with the best thing that you can do is manage your position size.
US Stock Market Forecast Video for 23.05.22
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