S&P 500 Price Forecast – Stock Markets Take a Nosedive

Technical Analysis of the S&P 500

During Tuesday's trading session, the S&P 500 E-mini contract briefly hit the 200-Day EMA before being quickly repulsed since American CPI data came in substantially higher than expected. In actuality, the Core CPI figure exceeded expectations by double. Looking at the beginning, it seems that we will attempt to close the little gap below the 4000 level, but if we give up on that, it's possible that we will fall much farther. In this case, a true carnage may be in store for us.

I find it surprising that Wall Street managed to talk itself out of considering anything but a "Fed shift," but they did. This is about the third time they've done it, and it seems to be deliberate. Stocks are inflated in order to be dumped on retail traders. I am fading short-term rallies since doing so has historically been successful because at this point, I would not be shocked in the least if this market made a brand-new bottom. Volatility will be a significant issue for the foreseeable future, if not months.

People will attempt to unite behind the next story, which is that "we already knew that the Fed was going to hike interest rates by 75 basis points." Nevertheless, all pertinent evidence indicates that the economy is set to take a serious blow. I see every rally in this market as a chance to go short. I think a lot of other individuals have the same perspective.