S&P 500 Price Forecasts – Stock Markets Bounce to Kickoff Week

S&P 500 Technical Analysis

The S&P 500 rallied significantly during the trading session on Monday in the E-mini contract to show signs of life again. Remember, we are in the midst of earnings season so we may see a lot of volatility on top of all of the other concerns that have been around due to the global economy seemingly ready to fall apart. At this point, the biggest game in town is going to be deciding what the Federal Reserve is going to do, so pay close attention to any speech coming out of those people, but at this point the perception is that perhaps we are going to see some relief.

I would not hold my breath for this, and even though this is a nice bounce, when you look at the chart, you can see clearly that we are still very much in a downtrend, and I think that will continue to be the case going forward. The 50-Day EMA currently sits at the 3844 level and is dropping significantly to give us a potential soft ceiling.

This of course assumes that we can get anywhere near there, something that I don’t think you can necessarily count on. Ultimately, this is a market that will continue to be more of a “fade the rally” type of market as there’s no real reason to believe that suddenly risk appetite is going to shoot through the ceiling. Having said that, it’s also worth noting that the rallies occur in a bear market can be quite convincing and vicious. At this point, I’ll be looking for signs of exhaustion to start shorting yet again.