Technical analysis of the S&P 500
S&P 500 futures markets fell sharply during Friday’s trading session and turned around almost immediately. We have broken below the 50-day EMA and broke a couple of lows formed last week. By doing so, it is possible that we can see a push lower and maybe reach the 4400 level, where the 200-day EMA currently sits. Of course, if we collapsed down there, that would be a very negative turn.
At this point it looks like the S&P 500 is at the mercy of the rates market as we have seen strong upward pressure on interest rates in America. Every time that happens, the market sells on a bit, and it looks like we’re seeing an ongoing bond battle in the stock market. Because higher interest rates make it less attractive to work money on the stock market. In addition, I would also like to point out that the economic situation seems to be deteriorating worldwide, which of course will not be good for corporate profits.
If we can reverse and take out 4500 by the daily close that would be very bullish. However, I don’t see that happening and at this point it’s likely that we’ll see something that would be bullish happen. I don’t see that, however, and frankly, consumer confidence in the United States has dropped so low that I don’t think stocks really are going to have much reason to be happy anytime soon.
US stock market forecast video for 04/12/22
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