S&P 500 Price Forecast – Thin Labor Day Trading

S&P 500 Technical Analysis

The S&P 500 went back and forth in a very tight range during limited electronic trading on Monday, which is not a huge surprise considering that we have Labor Day going on in the United States. That being said, the market is sitting on an area of support, in the form of the 3900 level. If we were to break down below that level, then we could continue to go much lower. At that point, we more likely than not will attempt to get down to the 3800 level. After that, then we would be looking at the low near the 3637 level.

Rallies at this point in time should continue to see a lot of resistance, especially near the 4061 level, where it looks as if the 50-Day EMA is trying to cross lower. Ultimately, the Federal Reserve continues to be very tight with its monetary policy, and of course, we are almost certainly going into a recession.

With that being said, there’s no real reason to believe that the S&P 500 will rally for a significant amount of time. Yes, we may get a short-term bounce, but that more likely than not will be a selling opportunity. In fact, I don’t really have a situation where I want to be a buyer, because the macroeconomic situation does not warrant that type of trading. The markets will continue to be very noisy, and the Tuesday opening could be somewhat wild.

The market will more likely than not continue to see a lot of noisy and troublesome behavior, so more likely than not we will continue to see sellers jumping into this market at the first signs of exhaustion.

US Stock Market Forecast Video for 06.09.22

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