S&P 500 Price Forecast – Stock Markets Continue to Get Hammered
S&P 500 Technical Analysis
The S&P 500 initially tried to rally a bit during the trading session on Tuesday, to turn around and break down rather significantly. At that point, the market broke down below the 3800 level to show signs of weakness. The 3750 level was then tested, which is an area that has offered support over the last couple of days, but I think it’s probably only a matter of time before break down from here and drift even lower. The 3700 level is an area that is for significant support, and therefore I think it’s only a matter of time before we test and perhaps even break down through there.
If we do turn around and rally, the 3950 level could be resistance, as it has been over the last couple of weeks. After that, we have the 50 Day EMA and the 3993 level and dropping. Ultimately, I think this is a market that will continue to see a lot of negativity in general, so I’m looking for signs of exhaustion to sell, much like we got in the futures market early during the day on Tuesday.
Companies around the S&P 500 will have to write down earnings, and of course, the Federal Reserve continues to tighten monetary policy, both of which will work against this index quite feverishly. With that being the case, I have no interest in buying this market until something fundamentally changes, something that I just don’t think happens anytime soon. Longer-term investors may look at this as an opportunity to “pick up value”, but we have so much working against the stock market right now that I would be cautious.
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This article was originally posted on FX Empire
