S&P 500 Price Forecast -S&P 500 E-mini Contract Slams Into 3900

Technical Analysis of the S&P 500

The CPI data released during the trading session on Thursday were only at 0.4% month over month instead of 0.6% month over month, and as a result, the S&P 500 E-mini contract rocketed straight up in the air. With that said, the market will most certainly continue to witness a lot of people fantasizing about a softer Fed. Nevertheless, given that the US economy is still much tighter than most of the rest of the world, even if the upcoming interest rate hike is only by 50 basis points, I do believe that eventually the US dollar will start to fall along with the S&P 500.

Technically speaking, it is clear that we have banged into the 3900 level, which has obviously been supported and resisted numerous times along the road. Beautiful candlestick for the Thursday session, but can the market keep rising further? If it fails, we can go for the 200-Day EMA, which is now trading at the level of 4027. On the other hand, if we reverse course and draw back, we might head in the direction of the 50-Day EMA, which is close to 3826.

Pay attention to how the markets close out the week if you want to know what they are really thinking. They are far more confident if they are prepared to keep stocks through the weekend. Being able to maintain the first surge through both Saturday and Sunday is quite another thing altogether. This is currently a severe countertrend motion, although it hasn't yet grown any larger.