US Stock Markets Get Bashed Heading Into the Weekend

S&P 500 Technical Analysis

The S&P 500 has fallen rather hard during the trading session on Friday as we continue to see a lot of negativity out there. Now that the market has broken significantly below the 200 Day EMA, it is very likely that we could go lower, as we are now threatening the 4300 level. Breaking down below the 4300 level then opens up a move down to the 4200 level.

Keep in mind that interest rates continue to spike, and that does put a damper on risk appetite when it comes to stocks. I would also point out that we just kicked off a breakdown from a bearish candlestick. It does suggest that we are going back to the lows again, and that would make a certain amount of sense as it is an area that had been so important that traders would like to revisit it.

The size of the candlestick is something worth paying attention to, and therefore I think what we have got is a market that is going to continue to be a “fade the rally” type of situation. It is not until we recapture the 50 Day EMA that I would consider buying unless, of course, the Federal Reserve changes its attitude completely. At this point, they still look as if they are going to aggressively raise interest rates, so that is something worth watching.

The size of the last couple of candlesticks does suggest that we have further downward pressure just waiting to happen, and therefore I like the idea of taking advantage of exhaustion as it occurs. At this point, there is nothing good about the look of this chart.

US Stock Market Forecast Video for 25.04.22

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