S&P 500 Price Forecast – Stock Markets Have a Brutal Start to the Week

Technical Analysis of the S&P 500

The S&P 500 gapped lower in the futures market to start the week on the back foot, and then just kept falling from there. As a result, the market seems to be on the verge of collapsing totally, but we still have the psychologically significant level of 4000 to contend with. The 4000 level will provide some support, but if we break down below it, the market is likely to go considerably more to the south.

In the interim, we could see a recovery, but that bounce will almost probably be sold into, so I'm watching for rallies that show indications of tiredness that I can profit from. I'm not interested in purchasing this market until the Federal Reserve alters its attitude on interest rates. That does not seem to be the case anytime soon, thus it is worth waiting for chances to become scarce once again.

If we break down below the 4000 mark, we will almost certainly see additional selling, with a sharp acceleration to the negative.

For me to be interested in purchasing, the market would have to break over the 4300 level, which we are nowhere close doing, and the Monday candlestick has made that much less probable than it was before. The S&P 500 will suffer as long as we are concerned about inflation and lack of growth in general. In addition, the Federal Reserve is tightening monetary policy, which has been the only focus of Wall Street for well over a decade.