US Stock Markets Continue to Look Threatened

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session only to give it back up. All things being equal, the market is currently sitting on the 4400 level, which is also sitting right at the 200 Day EMA. At this point, the market is likely to see continued pressure, as it looks like the interest rates rising will continue to be toxic for stocks. Furthermore, we also have a lot of negativity when it comes to the idea of the global economy, so that of course will have an outsized effect on the S&P 500 companies.

If we break down below the inverted hammer from the Tuesday session, that could send this market much lower, perhaps reaching the 4300 level. After that, then the S&P 500 futures market could drop to reach the 4200 level. At this point, the market is likely to see a lot of significant downward pressure and therefore I think that every time we rally, you have to look for signs of exhaustion to take advantage of. The 50 Day EMA above is at the 4453 level, and I think it would offer quite a bit of resistance as it did during the Tuesday session.

We could be forming a larger consolidation area, so we will have to see whether or not that is the case. If we turn around a break above the 4500 level though, that would be a very bullish sign and could open up the possibility of forming some type of “inverted head and shoulders” pattern. At this point, it does not look likely, but it is always a possibility that you need to pay attention to.

US Stock Market Forecast Video for 14.04.22

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