S&P 500 Price Forecast – Consolidation Continues in the S&P 500 E-mini Contract

S&P 500 Technical Analysis

The S&P 500 E-mini contract has barely gained during Thursday's trading session as we remain in the same trading range that we have been in for the last week or so. Earnings season, which is now underway and is marked by a lot of noise that will continue to cause people issues, is in full swing. A truly strong signal would be a break over the 4200 mark, but I don't see that happening anytime soon since that level looks to be quite resistive. As a result, we are in a situation where, if we break below this level, we can go all the way down to the downtrend line, where the 50-Day EMA is just about to cross the 200-Day EMA.

That area of the golden cross, which also happens to be the 4000 level, is currently seen to represent the short-term "floor in the market" for the S&P 500 E-mini contract. But in the end, I think you have to look at this through the prism of a really erratic and unstable market. Anything lower might trigger a massive selling avalanche. If that's the case, sledding will be difficult, so you should be cautious about the size of your stake. However, it's probably crucial to remember that recent highs have been progressively falling. Something is probably about to happen quickly and soon.