S&P 500 Trying to Stabilize

Christopher Lewis
Published: Feb 14, 2022, 17:04 GMT+00:00

The S&P 500 has bounced a bit after initially selling off in the futures market on Monday. That being said, we are paying close attention to the 200 day EMA.

S&P 500 Trying to Stabilize

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The S&P 500 has initially fallen during the course of the trading session on Monday to dip towards the 4360 handle in early futures trading. We have bounced a bit from there, but at this point in time we are still paying close attention to the Ukraine/Russia issues, and of course the overall slowing down of markets in general. It is worth noting that the economy looks to be suffering at the hands of inflation, so that of course is not good for stocks either.

S&P 500 Video 15.02.22

If it continues that we see higher interest rates spiking in the United States, then it is likely that the stock markets will continue to suffer a bit. Ultimately, this is a market that I think will then tend to be very volatile, so you need to be cautious about your position size. Quite frankly, that something that I have been saying about all markets, as people are generally going to be very erratic in this type of an environment.

If we break down below the bottom of the candlestick, we could go looking towards the 4300 level underneath, which is an area that could open up even more selling. To the upside, I do believe that we are somewhat limited, probably looking at the 4500 level as a major barrier. Quite frankly, a lot of the concerns coming out of the Russia/Ukraine border has worked against the market, but we also have to worry about interest rates. Any relief rally based upon the Russians stepping back will more than likely get sold into once we start seeing a little bit of focus being put back on the economy.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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