S&P 500 Price Forecast – Jobs Number Leads to Nothing

Technical Analysis of the S&P 500

During Friday's trading session, the S&P 500 dropped down somewhat, dipping below the 4100 barrier. We're attempting to create a hammer by spinning around to demonstrate our support. If we break through the bottom of the hammer, we'll almost certainly go considerably lower. However, if we break over the top of the hammer, the market is likely to go above the 4300 level. Although there is a lot of commotion right above us, it would make sense if we went back and forth and tried to consolidate even more.

The market seems to be deciding whether to break down any deeper, but I believe that a rebound at this time will more than likely show indications of tiredness, allowing us to resume shorting. If we were to break through the 4300 level, we may aim for the 4400 level.

At this point, I believe the market is just trying to figure out what to do next, given the tightening of the Federal Reserve, as well as high inflation and an economic downturn. In other words, it's a tremendous mess right now, and we're going to see a lot of erratic behavior that will continue to sway the market. Because we are effectively in a range-bound scenario, it should be traded accordingly.