The Stock Markets Give Up Gains From the Previous Session

S&P 500 Technical Analysis

The S&P 500 futures shot higher yesterday as the Federal Reserve released a 50 basis point hike. That being said, Jerome Powell said that a 75 basis points hike was “not on the table”, so therefore it is likely that we got a little bit of a relief rally more than anything else. At this point though, nothing has fundamentally changed, as we still have to worry about interest rate hikes and a slowdown in the economy.

All of that being said, there is a lot of support underneath and the 4100 level continues to be an area that you will have to pay close attention to. If we were to break down below the bottom of the hammer from last week, then it is likely that we go much lower. At this point, it opens up a move down to the 4000 level, possibly even after that. If we break down below the 4000 level, then it is likely that we go even further.

As things stand right now, it looks as if we are hanging around in a consolidation area, with the 4300 level offering a bit of a resistance barrier. The market dancing around in this range would make a lot of sense, as there is so much in the way of confusion. Ultimately, this is a market that I think will continue to be volatile, so you need to be very cautious with your position size. On the other hand, if we were to break above the 4300 level, that would show real strengthen the market and perhaps a potential follow-through to the 4500 level.

US Stock Market Forecast Video for 06.05.22

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