S&P 500 Price Forecast – Stock Markets Quiet on Reopening

Technical Analysis of the S&P 500

As traders returned to the market on Tuesday, there was a little downward slide in the S&P 500 throughout the trading session. Due to the lack of a meaningful reason for the markets to move, I would advise against making too many assumptions about them. In that setting, I would predict that there would be some back-and-forth, but I'm not quite persuaded that this is a market worth investing in at the moment.

Although it seems to want to grind a bit higher, I wouldn't be too enthused. The majority of the changes between now and then will likely be narrow and senseless since, in my opinion, the markets will be waiting for the January employment report. This market seems to be in a lot of Brownian motion right now, which makes sense given that there has been a lot of commotion leading up to the holidays. A little pause would likely be appreciated as well.

In the end, it's more probable than not that the markets will utilize the 50-Day EMA above as a possible "ceiling," albeit I believe that's probably relatively constrained. At the end of the day, I think this market will likely attempt to reach the 3900 level, but whether it can break over that level depends entirely on other factors.