Stock Markets Continue to Attempt Recovery

S&P 500 Technical Analysis

The S&P 500 initially pulled back during the trading session on Friday only to turn around and show signs of support again. By doing so, the market is likely to continue staying in this bullish flag, which of course will be crucial. If we can break out of this bullish flag, it could lead to an explosive move to the upside. It will be interesting to see if this can actually happen because quite frankly this is a market that is fighting fundamentals, but then again one has to ask themselves when the last time fundamentals mattered on Wall Street?

This is all about liquidity, and whether or not the Federal Reserve is going to actually raise interest rates as much as the bond market things. We will continue to see a lot of volatility going forward, but at this point in time it looks as if Wall Street will give it up, and it is likely that the buyers will continue to try to step into this market and support it, especially with the 50 Day EMA offering a bit of technical support. Ultimately, if we break down below the 200 Day EMA, then the market breaks down rather drastically. I do not necessarily think that is going to happen, but it is a possibility. Expect a lot of noisy behavior, but quite frankly that is what the market has been all about over the last several weeks anyway. Expect a lot of noisy behavior, so keep your position size relatively small.

US Stock Market Forecast Video for 11.04.22

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