S&P 500 Technical Analysis
S&P 500 futures have been somewhat bullish during the trading session on Monday as we have seen a gap to kick off the week, but we also see the same resistance barrier come into play. In other words, we are simply banging around in the same area. Because of this, think it’s probably only a matter of time before we see a pullback, but if we do break out above the 4000 level, that could change the overall attitude in this market. Clearly, if we were to break above the 4200 level, then it’s likely that we would change the entire trend and start to see a lot of bullish momentum.
With that in mind, I think it’s probably more likely than not we see bits and pieces of exhaustion in the meantime, but you never know. If we were to break down below the 3700 level, that could open up quite a bit of selling pressure, which would allow a rather nasty breakdown, perhaps sending the market down to the 3600 level. In general, I think we continue to see a lot of volatility, and therefore you need to be very cautious with your position size, and therefore keep in mind that the market will continue to cause a lot of volatility due to headlines, Federal Reserve expectations, and many other things.
With that being the case, I think you need to be especially sensitive to whatever the next nonsense narrative is, as it seems like we are just running on fear and hope simultaneously. Regardless, we are in a downtrend and that’s the most important thing to pay attention to.
US Stock Market Forecast Video for 19.07.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire