S&P 500 Technical Analysis
The S&P 500 has rallied quite nicely during the trading session on Friday, showing signs of strengthening again. That being said, the area between 4100 and 4150 has been a massive support in the past, and now that we are broken below there, the question becomes whether or not it will offer resistance? Further compounding the situation is that the 50 Day EMA is currently at the 4190 level and dropping. In other words, it’s possible that we could see some exhausted inter-the market rather soon.
It is worth noting that traders are bullish heading into a long weekend, so that does help the situation, but there are so many different concerns out there right now that could come into the fray, I’m afraid it’s a bit hopeful that we are simply going to go straight up in the air. Bear markets tend to have nasty rallies, which is exactly what we are seeing right now. Not much has fundamentally changed, although traders on Wall Street are starting to price the idea of fewer interest rate hikes than originally thought.
Pay attention to the bond market, because if it starts to sell off again, that will be very negative for risk assets. The US dollar could have a bit of a say as well, so although this has been a very nice run over the last week or so, we still have a lot of work to do before we can confirm a change in attitude. That being said, if we can break above the 50 Day EMA, then we may start to see more traders jump into the market.
US Stock Market Forecast Video for 30.05.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Source: https://finance.yahoo.com/news/p-500-price-forecast-p-163015882.html