Stock Market

S&P Weekly Price Forecast – Stock Market Continues to Show Choppy Behavior

S&P 500 Weekly Technical Analysis

The S&P 500 fell a bit during the trading week, but seems to be happy staying in the same consolidation range that we have been in over the last couple of weeks, especially as the Non-Farm Payroll announcement shown that wage inflation is starting to dwindle in the United States, and that has people already thinking that the Federal Reserve is going to pivot. They are nowhere near it, and it has not changed anything. At this point, rallies still look suspicious, especially as the 50-Week EMA sits right at the downtrend line, near the 4020 area.

If the market were to turn around and break down below the bottom of the last couple of candlesticks, that means we could clear the 3800 level, perhaps getting ready to go down to the 200-Week EMA which is right at the crucial 3700 level. All things being equal, this is a situation where we continue to see a lot of noisy back-and-forth action, but I do believe that the market will eventually make a bigger move.

There are still plenty of things out there working against the strength of the stock market, but the amount of “hopium” that seems to be present on Wall Street is truly a thing to behold. Ultimately, the next week or 2 should break out and we could see the next move appear. I’m still bearish, but the fact that we are between the 50-Week EMA and the 200-Week EMA typically means that we are going to get some type of squeeze sooner or later. In other words, all at the market tell me which direction it wants to break before putting money to work.

For a look at all of today’s economic events, check out our economic calendar.

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