Stock Market Plunging Towards Support Again

The S&P 500 initially tried to rally during the trading session on Wednesday but has given back some of the gains to show signs of extreme weakness. At this point time, the market is likely to continue to see noisy behavior but if we plunged below the 4250 level, we could see this market unwind quite drastically. At that point, we could be talking about a bit of a crash. In general, this is a market that I think continues to be very noisy and apprehensive, so I have absolutely no interest in buying it.

S&P 500 Video 24.02.22

Keep in mind that there are a lot of geopolitical issues at the moment, and of course interest rates are rather high. Beyond that, the Federal Reserve is likely to continue to look towards inflation and raising interest rates. Because of this, I think there are far too many things working against the S&P 500 and is probably only a matter of time before we see real damage. If we do break down, it is likely that we could go looking towards the 4000 level given enough time.

To the upside, we would have to take out the 200 day EMA to get bullish at this point. Even then, I think you are still looking at a market that could very well end up being sold into. Until something fundamentally changes, or the Federal Reserve capitulates as far as rates are concerned, it is difficult to imagine a scenario where we see a lot of buying pressure in this market. With that being the case, I am more than likely going to continue to see selling opportunities.

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