The US Stock Market Continues to Pull Back

S&P 500 Technical Analysis

The S&P 500 initially tried to rally in the futures markets on Friday but gave back gains to show signs of weakness. By doing so, the market now threatens the 4500 level in the futures market, which is an area that has been important more than once. Because of this, it will be interesting to see if we pull back even deeper, perhaps even to the 50 Day EMA.

The size of the candlestick is somewhat lackluster, but it looks as if the 4500 target that I mentioned previously is in fact going to be tested. If we break it down below there, then the 50 Day EMA makes quite a bit of sense, followed by the 200 Day EMA which is at the 4400 level. The market continues to be very noisy, and I think it will remain that way going forward. After all, there are a whole host of mixed signals at the moment, not the least of which would be the bond market and the fact that so many traders believe that we are going to have as many as eight interest rate hikes, while so many others believe that it cannot happen.

Find a reason to go higher, but that is because it does not pay any attention to the underlying economy. Keep in mind that the stock markets are about liquidity, and not anything economically related. If that were the case, the most recent shot straight up in the air would not have happened. That being said, a lot of times you get these vicious rallies in bear markets, so although hope burns eternal, I will be playing this downside with options, and not directly in the market.

Stock Markets Forecast Video for 04.04.22

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