S&P 500 Price Forecast – Stock Markets Run Into Resistance

Technical Analysis of the S&P 500

The S&P 500 E-mini contract has had a rough start to the week as we have been testing a significant downtrend line. As a result, the market will continue to display a lot of erratic activity, particularly given that the 200-Day EMA is located just below. A move down to the 3900 level, which is essentially where the 50-Day EMA is at the moment, is possible if we break below the 200-Day EMA, which is likely to lead to even more negative price action.

The Federal Reserve meeting is in the middle of next week, and that will undoubtedly have a significant impact on how the market performs. It's probably wise to keep in mind that each rally that is predicated on what Powell may or may not say tends to be shorter. To put it another way, I ponder whether or not this market is at last taking the real economy into account. Not everything revolves on "Poppa Powell" and whether or not he is dispensing candy.

It's feasible that we may look at the 4200 level if we were to break above the highs from last week. The 4200 level courses are an area that obviously has a lot of prior action as well as a certain degree of psychology associated to it. Remember that the year is coming to a close, thus I believe it makes perfect sense that the famous "Santa Claus rally" has arrived. What really matters is if it endures for any period of time.