S&P 500 Weekly Price Forecast – Stock Markets Get Slammed by the FOMC

S&P 500 Weekly Forecast Video for 19.12.22

S&P 500 Weekly Technical Analysis

The S&P 500 E-mini contract initially shot higher during the trading week but has been absolutely ham slammed by Jerome Powell and his hawkish tone, now it looks like traders starting look at the reality of a slowing economy and a Federal Reserve that is going to continue to tighten. It’s amazing that the traders on Wall Street have fought the idea as long as they have but hope burns eternal when it comes to Wall Street at times.

It’s worth noting that we not only turned around for the week, but the market really fell apart. If we continue to see negative behavior, then it’s possible that we plunge down to the 200-Week EMA, which is closer to the 3700 level. This is a market that is going to also suffer at the hands of a lack of liquidity, and therefore we could see huge moves. Short-term rallies at this point could be sold into, as the downtrend line comes into the picture to show extreme negativity.

Ultimately, I think that the overall downtrend is about to continue, and the last couple of weeks could be very negative as we head into the new year and traders have no interest whatsoever and hanging on to losing positions. There may be a little bit of window dressing going forward, but I don’t know if it’s enough to turn the entire tide around. With this being the case, I prefer to fade short-term rallies, as I recognize this is a market that certainly has a lot of momentum working against it, and a serious lack of liquidity causes major issues as well.

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