S&P 500 Price Forecasts – Market Bounces From Oversold Condition

S&P 500 Technical Analysis

The S&P 500 had initially fallen during the trading session on Monday, but at this point in time it’s a bit oversold and we are near a major support level. A bit of a bounce does make a certain amount of sense, so having said that I think we got a situation where you get a short-term relief rally. That being said, I don’t think it’s necessarily going to anything that can last, it’s just that things have gotten out of hand.

The 3800 level above will more likely than not be a significant barrier, and then after that we would have the 50-Day EMA. After all, the market has been negative for quite some time, but when you look at the last couple weeks, it has been very difficult for the buyers to pick up any momentum, so sooner or later you think that there would be a bit of a short covering rally. Ultimately, I do think that we could break down below the lows, but we don’t necessarily do that right away. Ultimately, the 3600 level makes quite a bit of sense, and then possibly the 3500 level.

When you look at this chart, you can see that the slope of change was overdone, and therefore I think a lot of people are trying to get out of their short positions in order to take profit. Nonetheless, I do think that you will have to pay close attention to the interest rate market, because it has been such a major driver of where we are going, as there is a negative correlation between the two markets, and should continue to be.

US Stock Market Forecast Video for 27.09.22

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