S&P 500 Price Forecast – Markets Approach 200-Day EMA

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S&P 500 Technical Analysis

The S&P 500 E-mini contract has been very quiet during Monday trading so far, as we are hanging around the 200-Day EMA. The 200-Day EMA is an indicator that it will catch a lot of attention, so it’ll be interesting to see whether or not it respects that indicator, because it will have a major influence on where we go longer term. The market breaking above the 200-Day EMA could open up the possibility of a move to the 4000 level. That being said, it also can offer a significant amount of resistance.

The 200-Day EMA is at the top of the overall area that we are in, with the 50-Day EMA sitting underneath at the 3840 level. In general, this is a market that I think will continue to see a lot of volatility, as we question whether or not the Federal Reserve is going to come bail everybody out, or if we are going to see some type of turnaround and continuation of the negativity. After all, the economy looks as if it is tanking, despite the fact that the inflation numbers came down a bit. Because of this, I think a lot of people are jumping the gun as they start to look at it through the prism of the Fed coming back to bail everybody out.

I do believe that we will probably bounce around in this general vicinity, with the 200-Day EMA offering quite a bit of downward pressure, but at the same time we have the 50-Day EMA offering support. It is possible that we will continue to bounce around in this area for a while as we try to determine whether or not this rally has any legs or not.

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