Stock Markets Attempting to Build a Bullish Flag

S&P 500 Technical Analysis

During Tuesday's trading session, the S&P 500 dipped a little, but it wasn't a massive sell-off or anything. We look to be attempting to create a bullish flag, and if we can break through the downtrend line that I have shown on the chart, which is essentially the 4585 level, which is also where the previous double top occurred, we could see this market move much higher. 

To be honest, Wall Street is trying to figure out whether the Federal Reserve will come to their rescue or if they will attempt to battle inflation. Currently, it looks that the market will continue to be subjected to a great deal of back and forth pressure as a result of speculation.

If we break below the 50-day exponential moving average, I believe we will be in serious trouble. It's worth noting that last week's Friday candlestick was a hammer, implying that at the very least, the 4500 level will be key, and that there are buyers eager to enter this market. 

I don't believe we can read too much into this market until we get an impulsive candlestick, which we don't appear to be getting right now because we're simply moving sideways. We will, however, have that explosive session that will tell us which way we are more than likely ready to proceed in. Until then, short-term range-bound trading techniques are likely to triumph over all else.