S&P 500 Price Forecast – Bear Market Rally From a Major Support Level

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S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Tuesday as the 3700 level has brought in a bit of buying pressure. I had stated that perhaps the neutral candlestick from the trading session on Friday could lead to a little bit of a bounce, and as we approached the 3800 level, I am now going to start looking for signs of exhaustion. That being said, we could break even higher, perhaps even as high as the 4000 level before it’s all said and done. After all, we are oversold, and I think anybody who has objectivity in their analysis can see that.

On the other hand, if we turn around a fall from right here, it would not surprise me either. What would surprise me is if we suddenly change our overall attitude, and at this point, I think there are plenty of people underwater out there that would be more than willing to short this market on a bounce. Ultimately, the Federal Reserve is going to continue to see a need to tighten interest rates, and as long as that’s going to be the case, Wall Street will throw a tantrum.

The 50 Day EMA is currently at the 4068 level and dropping, so I think it coincides with a potential massive barrier at the 4000 level, which I will not hesitate that short if we bounce that high and show signs of exhaustion. It’s not until we break above the 4200 level that the trend will change, and quite frankly I think that is going to be impossible unless something fundamental does.

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This article was originally posted on FX Empire

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