Stock Markets Fall Again

The S&P 500 has fallen again during the trading session on Friday as the jobs number in America surprised to the upside. By doing so, it looks as if the market is going to continue to have to face headwinds from the Federal Reserve tightening monetary policy, probably more aggressively than originally thought. Because of this, the market is more than likely going to continue to be very volatile, but right now we are still very much in the same consolidation area we had been in previously. Looking forward, I think the market will see the 4250 level as an area of extreme support.

S&P 500 Video 07.03.22

As things stand right now, if we were to break below the 4250 level, I think that the market could fall apart rather quickly. At that point, I would anticipate that the 4200 level gets targeted, followed by the 4100 level. Keep in mind that the 200 day EMA has recently offered a significant amount of resistance, and therefore I think the longer-term trend is most certainly to the downside.

Because of this, I like the idea of fading short-term rallies, but you will probably have to do it on an intraday chart, as the markets are moving so quickly. With this being the case, I look at the 200 day EMA above as a major barrier to overcome if the buyers are in fact going to try out. I do not think that is the case, there are far too many things out there causing issues to think that we will suddenly see a complete change in attitude.

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