Stock Market Continues to Be Very Noisy

Weekly Technical Analysis for the S&P 500

The S&P 500 E-mini contract is still causing a lot of noise, but I believe it's only a matter of time before a decision is made. However, you should also keep in mind that it is the end of the year, which frequently leads to the appearance of the "Santa Claus rally." Given that we did, in fact, receive a hotter-than-expected jobs report on Friday, it's feasible that we will continue to view this as a situation in which people are disappointed. It will be interesting to watch where we go from here because this has been a shock to the system.

It's important to note that we are precisely at the 50-Week EMA, which has some technical significance. As a result, the presence of resistance is not entirely unexpected, especially given the presence of a downtrend line nearby. It is likely that we may decline to the 3900 level and then perhaps even the 3800 level if we were to break below the candlestick's bottom.

I do expect a lot of noisy activity regardless, so bear in mind that this market is still at best unstable, making longer-term trades likely to be a little more challenging to hold onto. There is a chance that we could witness a brief upward spike followed by a selloff if money managers do attempt to pad the books at the end of the year.