US Stock Markets Continue to Work Off of Lower High

S&P 500 Weekly Technical Analysis

The S&P 500 had a rough week again, breaking down to the 4387 level. The market is likely to continue to see the 50 Week EMA as a potential short-term support barrier. Ultimately, this is a market that I think continues to see a lot of downward pressure, perhaps making the market go looking towards the 4100 level.

Keep in mind that the market has a lot of things going on right now, not the least of which will be interest rates rising. Because of this, the fact that the Wall Street traders are trying to determine whether or not they are going to be bailed out by the Fed, I think we will continue to see a lot of noisy behavior. Rallies at this point still look a little bit suspicious, so at that point in time, I would look at signs of exhaustion as an opportunity to get short again. You probably need to pay closer attention to the short-term charts than longer-term ones though, because there is going to be a lot of noise. Nonetheless, it certainly looks as if we are going to struggle to find some type of reason to get long.

Looking at this chart, if we were to break down below the 4100 level, is likely that we could go looking to the 4000 level, perhaps even breaking down below there. Notice that we have broken through a major uptrend line, so that of course is something that a lot of longer-term traders will be paying close attention to as well. At this point, things look unstable to say the least.

S&P 500 Forecast Video 18.04.22

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