Stock Indices Recover on Tuesday

S&P 500 Technical Analysis

The S&P 500 has broken below the 200 Day EMA and the futures market early on Tuesday to show signs of breaking down again, but we have turned around to slam into the 50 Day EMA. This is a relatively widely followed indicator, so should not be a huge surprise that we are bouncing around here. If we can break above the 4500 level, then it is very possible that we could see the S&P 500 futures try to get back to the crucial 4600 level.

When you look at the chart, it does look as if it is at a great place to bounce, but the real question is going to be how do we behave after this bounce? I think at this point we are more likely than not to see sellers come back into the market, especially as inflation seems to be ripping higher. With this, I am not overly excited about buying the S&P 500 futures market, but I do recognize that a short-term bounce is more likely than not going to be the outcome of the last couple of days.

Keep your position size reasonably small, we are moving on the latest panic or freak out, which of course always makes for difficult trading. Whether or not the Federal Reserve bails out Wall Street is still the question on everybody’s mind, so it will be interesting to see how that plays out over the next couple of weeks. Unfortunately, this means that we are going to have more volatility, not less of it. This is a very dangerous market to be involved in at the moment.

US Stock Market Forecast Video for 13.04.22

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