S&P 500 Price Forecast – Quiet Electronic Trading Produces No Thrills in S&P Futures

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S&P 500 Technical Analysis

The S&P 500 was very quiet during the trading session course was close, but the futures market was open for a bit of electronic trading here and there. That being said, the market did not do much so you cannot read a lot into the Monday candlestick. If we do break above the highs of both Friday and Monday, then it’s possible that we could go looking to reach the 3900 level. The 3900 level of course is an area where there is a certain amount of psychology at play, and an area where we had seen selling pressure previously.

Any signs of exhaustion in that area will get faded, but we could break above there to test the 50 Day EMA. At that point, we would also probably see more selling pressure. The 50 Day EMA just happens to be sitting right at the 4000 level, so that’s an area that a lot of people will have to pay close attention to as well, as it is a large, round, psychologically significant figure. Underneath, the 3700 level continues to offer support, and it must be said that the market is probably due for short-term bounce anyway.

Longer term, inflation and the fact that companies around the United States are going to have to write down estimates during earnings calls will almost certainly continue to put downward pressure on this market. That being said, I’m not a big fan of buying this market, but would rather wait for signs to start selling again.

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This article was originally posted on FX Empire