S&P 500 Price Forecast – Stock Markets Threatening to Move Higher

Technical Analysis of the S&P 500

Tuesday's session saw a very minor increase in the price of the S&P 500 E-mini contract as we approached the 50-Day EMA. The market seems to be attempting some kind of breakout as a result, but ultimately I believe this is just a "fade the rally" type of scenario since we are in the middle of earnings season and, quite frankly, most guidance is likely to be at best subpar. The Federal Reserve may reiterate the need to tighten monetary policy in the coming days, but Wall Street gamblers may attempt to push prices higher in the lead-up to the next Federal Reserve meeting in November.

In any case, I'm watching for symptoms of weariness so I can start shorting them, but I haven't exactly seen them. Although I still believe there is significant resistance around the 3900 level and again at the 200-Day EMA, which is slightly over the 4000 level, the market may break above the 50-Day EMA.

I'll be looking to short this market if the daily candlestick moves much to the upside, but for the time being, I believe that trading in this kind of very volatile market is only challenging during the bear market rally.

I'll keep seeing it through that lens because it wouldn't take much to cross the wires and divide the market once again. The greatest method to trade your market is to just wait for an opportunity, since you do sometimes see significant rallies. At the moment, I'm doing just that.