S&P 500 Weekly Price Forecast – Stock Markets Plunge

S&P 500 Weekly Technical Analysis

The S&P 500 E-mini contract has been battered during the week as we continue to see a lot of strength in the US dollar. The Federal Reserve is not writing to anybody’s rescue, and I think we finally are starting to see people come to grips with this. We are getting ready to make a lower level, which of course continues the overall downtrend. I anticipate that the 3500 level will be targeted initially, perhaps even lower than that.

With global growth falling apart and the supply chain still a mess, this should not be a huge surprise at all. We have seen company after company guide lower into the future, and it’s probably worth noting that some companies like Walmart have canceled billions of dollars worth of orders for the upcoming holiday season. Things could get rather ugly, and therefore I think we’ve got a situation where you fade every rally that occurs until something fundamentally changes. Right now, it would take at the very least the Federal Reserve changing its monetary policy, but I just don’t see how that happens with inflation running as hot as it is.

Furthermore, you need to keep in mind that the Federal Reserve has a long history of doing the wrong thing at the wrong time. Remember when inflation was just “transitory” earlier this year? Well they got that really wrong, and now we are starting to pay the price for that. In other words, anybody who has faith in the Federal Reserve at this point is asking for trouble. They will do the wrong thing, it’s in their nature as they are academics and tend to look at lagging indicators. This is not setting up for very good move.

S&P 500 Weekly Forecast Video for 26.09.22

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