S&P 500 Technical Analysis
The S&P 500 fell a bit during the trading session on Friday as the jobs number came up much hotter than anticipated. The addition of over half a million jobs during the month of July almost certainly means that we need to continue seeing interest rate hikes. That is typically bad for stock markets, and that gives us a bit of a headwind for stocks. It’s also worth noting that the S&P 500 has approached the 200 Day EMA and pulled back a bit as well, as the market is working on forming some type of neutral candlestick for the weekly timeframe.
If we were to turn around and break down below the 4100 level, it’s likely that the S&P 500 could break down, perhaps dropping toward the 50 Day EMA. I do believe that given enough time this is a situation where we will see a pullback because the narrative has been blown up. The 50 Day EMA underneath could be a potential target, which is currently sitting at the crucial 4000 level. With that being the case, it’s likely that we will continue to see buyers in that general vicinity. I think it’s a bit rich to think that stocks are suddenly going to take off, due to the fact that the market has to worry about so many things at the same time.
However, if the S&P 500 E-mini market were to break above 4200 level, that would be a very bullish sign, perhaps reaching the 4300 level. At that point, we are looking at a bullish trend, but I think it takes a bit of a stretch to think that we are about to enter one for the longer term.
US Stock Market Forecast Video for 08.08.22
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