Stock Markets Continue to Hover Around Major Technical Levels

The S&P 500 has initially tried to rally during the trading session but is starting to show signs of hesitation just above the 200 Day EMA. At this point, the market still looks as if we are trying to build up some type of consolidation pattern, and I think we still have quite a few issues when it comes to the idea of economic growth that will weigh upon this market.

If we break back down, then we could very easily go back to the 4300 level, which is the bottom of the overall consolidation for the week. On the other hand, if we do turn around and rally, the 4500 level could end up being the target. For what it is worth, the 50 Day EMA is starting to drop below there, suggesting that we are going to continue to see a bit of technical resistance in general, to begin with.

S&P 500 Video 04.03.22

I think the only thing you can probably count on at this point in time is choppy and noisy behavior, and therefore it is difficult to have a lot of faith in a longer-term move, especially as inflationary concerns and monetary policy continues to weigh upon the bullish attitude of most traders. Beyond that, we also have a lot of geopolitical concerns, most decisively led by the Ukrainian conflict.

In this environment, especially as growth in the United States is going to be slowing, I just do not have an argument to be buying this index. I suspect we are more likely than not ready to pull back just a bit to reenter the area that we have been comfortable in for the previous week.

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