S&P 500 Struggles to Find Momentum

S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the course of the trading session on Monday as we continue to see a lot of hesitation. The 4500 level has been broken above, but there is a bit of a micro double top near the 4585 level that previously had offered resistance, and it looks as if the market is going to struggle with the idea of breaking above there.

Furthermore, the market has been all over the place through the ideas of interest rates rising, economic momentum slowing down, and yearly comps being almost impossible. Because of this, I think you have a situation where a pullback is more likely than not, but I also believe that there is a significant amount of support as well. The 200 Day EMA sits at the 4391 handle, so I think that would be a major support level. If we were to break down below there, it is likely that we could drop down towards the 4200 level if we get a sudden “risk-off move” around the world.

If we can break above the 4600 level, then it is possible that we could go much higher, perhaps reaching the 4800 level, which was basically where the all-time highs sit. I think we need to see some type of reason to make the next move, and as a result, we probably go sideways in the short term trying to figure out where the momentum hits. Ultimately, I think choppy behavior is what you can expect, and therefore you need to be cautious with your position size until we get a bit of clarity.

Stock Market Forecast Video for 29.03.22

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