S&P 500 Price Forecast – Markets Look on Edge

Technical Analysis of the S&P 500

Given that both Microsoft and Google missed their earnings projections, it is not surprising that the E-mini S&P 500 contract gapped lower to start the trading day on Wednesday. Additionally, none of them provided great advice, so maybe the market is beginning to reflect reality again. These indexes often follow the performance of the major stock market participants, mostly because they are not equally weighted. After all, the S&P 500 is built to increase depending on all of the favorites, just like other American indexes.

A higher-than-expected GDP figure makes many wonder whether the Fed will really act on what it has been encouraging the market to do for months. On top of that, GDP statistics are due out tomorrow, which may also lead some people to feel a little uneasy. In spite of the fact that hope never dies and no one can really predict where the market will go next in such an emotional environment, it appears as though we are poised for a nice move lower, especially given that Apple will report after the close tomorrow and could add further downward pressure after Microsoft and Google absolutely destroyed the futures overnight.

It's possible that we will travel back into the previous consolidation region, which was so crucial for such a long time, if we break down below the 3800 level. Given that, I believe it's just a matter of time until we fall once again. We may be in for some choppy seas if we add it to the Federal Reserve's interest rate meeting and announcement the following week.