S&P 500 Price Forecast – Stock Market Rallies Again On Election Day

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S&P 500 Technical Analysis

The S&P 500 has rallied significantly during the trading session on Tuesday to break above the 50-Day EMA. The 50-Day EMA is an indicator that catches a lot of attention, but right now I suspect that a lot of traders are looking at the elections in the United States as the catalyst for the day. Ultimately, the market is hoping for some type of stalemate in the U.S. Congress, meaning that there will be less regulation. Having said that, I suspect that sooner or later the reality may set in, and we could see a continuation of the downtrend.

If we break down below the 3800 level, then we would reenter the previous consolidation area that we had seen. If we break down below the bottom of the recent dip at the 3700 level, then it’s likely that we could go down to the 3600 level. All things being equal, this is a market that I think will continue to see a lot of volatility, and we may get a little bit of a “hopium” rally going forward, so if we were to break above the most recent high, then we could go looking to the 4000 level.

The 4000 level above also is attracting the 200-Day EMA, which is a longer-term indicator of trend as well. Regardless, I think it’s only a matter time before we start falling again, so the next day or 2 could be crucial. I don’t have any interest in buying this market, so therefore it’s likely that we continue to see plenty of chop and a volatility, so you will need to keep your position size reasonable regardless of which direction you choose.

US Stock Market Forecast Video for 09.11.22

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