US Stock Markets Continue to Get Hammered

S&P 500 Technical Analysis

The S&P 500 has broken down to reach near the 4200 level. The market could go even further to the downside, but we are a little overextended at this point, so it does make a certain amount of sense that we would see a little bit of a bounce. That being the case, I am more than willing to jump all over a bounce, as we are continuing to see a lot of negativity. If we break it down even further, then the 4100 level would be your next potential target.

On the upside, the 200 Day EMA is at the 4400 level and sloping lower. I believe that the market is going to struggle to get above there, so if we did break above the 200 Day EMA, then it is possible that we could turn things around. However, the Federal Reserve continues to be extraordinarily hawkish, and that should continue to be one of the biggest factors that we will have to look at.

Ultimately, this market looks horrible, so what I am waiting to see is whether or not we get a bounce that shows signs of exhaustion that we can take advantage of. Signs of exhaustion after a short-term bounce will continue to be an opportunity for traders to get involved again. Ultimately, I think this is a market that continues to be very noisy but still favors the downside overall. It is not until we break above the 4500 level that markets will completely turn around. It is all about the Federal Reserve more than anything else, so keep that in mind.

US Stock Market Forecast Video for 26.04.22

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