S&P 500 Price Forecast – S&P 500 Continues to Threaten Resistance

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Wednesday, as it looks like we are threatening a major area of resistance. Ultimately, this is a market that I think given enough time will probably have quite a bit of pressure to deal with, and it’s not until we break above the 4200 level that I think we get a true breakout. As Friday is the jobs number, this seems very unlikely to happen in the short term.

Furthermore, you need to pay attention to the fact that the 200 Day EMA is sitting just below the 4200 level, so there’s a lot of technical reasoning to think that we might stop here. If we can break above 4200, then I think we will go looking toward the 4300 level above, which is another area of resistance. If we break above there, then I think the trend has changed completely, and the S&P 500 takes off like there’s never been anything wrong.

A lot of this is based on the idea that perhaps the Federal Reserve is going to have to pivot rather soon, due to economic numbers. However, that does not take into account that even with inflation slowing a bit, it is still extraordinarily high. That is without a doubt one of the biggest concerns that they have, so therefore that will be front and center. If we were to see inflation pick up, that will be even worse. While Wall Street is trying to convince itself that the Federal Reserve is going to protect it, the reality is that the Federal Reserve may not have much of a choice other than to continue tightening going forward.

US Stock Market Forecast Video for 04.08.22

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