S&P 500 Price Forecast – 200 Day EMA Comes Into the Picture Again

Technical Analysis of the S&P 500

The 200-Day EMA is barely above in the E-mini contract, therefore it's possible that the S&P 500 will continue to experience problems in this area despite initial attempts to rally during the trading session. The 4000 level is currently the focus of our attention because it is a level that obviously has a big, round, psychologically significant number. Another breakdown can occur if we fall below the 3900 level.

Keep in mind that the earnings season has been a bit of a mixed bag. We also need to pay close attention to the Federal Reserve because, in my opinion, the market has been overly optimistic about the possibility of the Federal Reserve slowing down.

To be really honest, I believe they will keep suppressing demand in an effort to lower inflation.

Remember that the inflation rate in the US is slightly under 8%, making their target over 4 times higher. Additionally, there is a myth being propagated that suggests consumers may have to deal with "greater inflation." That is not true.

In the end, I believe you will continue to see a lot of volatility, but it is also important to note that following the CPI report, we immediately went straight up in the air and have since practically stagnated. It has no meaningful follow-through, in other words. I'm definitely keeping an eye out for a chance to start fading because it might be the main tell on this chart right now. We need some sort of stimulus, though, for prices to rise as high as 4200 if we break above the highs.