S&P 500 Prices Forecast – S&P 500 Breaks to a Fresh Low

S&P 500 Technical Analysis

The S&P 500 has broken down significantly during the trading session on Friday as we continue to see a lot of negative behavior out there. There are a lot of concerns when it comes to the idea of global growth, and of course monetary policy. The monetary policy continues to favor the downside, and therefore I think that anytime we rally in this market, it’ll be time to start shorting. The 50-Day EMA sits just above the 4000 level, and it is dropping rather significantly. Short-term rallies that show signs of exhaustion will attract a lot of traders who are trying to get out of the way of a bear market because quite frankly there are a lot of value hunters out there that are underwater.

On the other hand, if we break down below the bottom of the candlestick for the session on Friday, then it opens up the move down to 3800, which has been an important level more than once. Breaking that level then could cause serious damage to this market. Regardless, I don’t have any interest in trying to buy this market, at least not until monetary policy changes. Yes, we could get another massive bounce, but that’s just going to end up being another selling opportunity before it’s all said and done.

The market is very likely going to show signs of further negativity by the end of the day because it’s hard to imagine that anybody is going to want to hold stocks into the weekend. In other words, there’s nothing good on this chart and it’s simply a matter of selling at the first opportunity of exhaustion that a bounce gives you.

US Stock Market Forecast Video for 19.09.22

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