S&P 500 Price Forecast – Stock Markets Pull Back

Technical Analysis of the S&P 500

The S&P 500 has retreated slightly during Wednesday's trading session to display hints of weakness once again. Remember that the stock markets are now experiencing earnings season, which will undoubtedly have a significant impact on what occurs. Furthermore, it is highly possible that this will continue to be extremely loud because people are concerned about the Federal Reserve and what they will do. As we attempt to determine whether or not the 3600 level will continue to serve as support, I believe that we are now more or less in a consolidation period.

Having said that, I believe that any rise at this stage will almost certainly be seen as a possible buying opportunity with occasional hints of tiredness. Additionally, you must pay close attention to what the Federal Reserve is doing, and as of now, it seems as if it will continue to tighten monetary policy. I simply don't see a situation where I would be prepared to purchase because of this. Having said that, keeping in mind that some of the most ferocious rallies occur during bear markets, so you may sometimes witness a pop.

I will become a selling at the first indications of tiredness since I do think this market has further room to fall. The only thing I feel safe doing, at least for the time being, is fading rallies due to the 50-Day EMA sitting just above and posing considerable psychological barrier as well. Things might get intriguing as soon as the Federal Reserve modifies its monetary policy.