S&P 500 Weekly Price Forecast – S&P 500 Showing Signs of Exhaustion

Christopher Lewis
Published: Dec 9, 2022, 16:54 UTC

The S&P 500 E-mini contract has fallen during the week, as we continue to see a lot of noise at a longer-term trend line.

S&P 500 FX Empire

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S&P 500 Weekly Forecast Video for 12.12.22

S&P 500 Weekly Technical Analysis

The S&P 500 has shown itself to be somewhat negative during the week, as we have broken down toward the 3950 level, which is an area that has been supported over the last month or so. At this point, the market is going to be paying close attention to the idea of what the Federal Reserve is going to do next week, as there is a 2 day meeting that concludes on Wednesday with an interest rate announcement, and perhaps more importantly, a statement. After all, Wall Street runs on liquidity, and not on corporate earnings.

It’s also worth noting that the market has shown itself to be highly sensitive to the 50-Week EMA, which is an area that seems to be offering a lot of noisy behavior as well. Ultimately, the market continues to see a lot of volatility, so if we were to break above the highs of the last couple weeks, and by extension the downtrend line, it’s likely that we could go to the 4200 level.

That being said, the market is likely to see a lot of noisy behavior as we head to the end of the year anyway, as we have seen a lot of liquidity pullout in the last couple of weeks of December most years. Because of this, I think we will continue to see more of a volatile move, especially after the end of next week. At this point, it looks like we are starting to exhaust ourselves, so it looks like the downside could very well be where we end up going over the next couple of weeks.

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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