S&P 500 Price Forecast – S&P 500 Futures Tests the Low Again

Technical Analysis of the S&P 500

The S&P 500 continues to give traders issues throughout the globe, as there is a lot of selling pressure. While we did rebound off the recent lows early on, there's nothing on this chart to indicate we won't do so again. Indeed, given the enormous candlestick that developed throughout the day on Wednesday, I would expect it. That demonstrates genuine dread, and to be honest, we're still a long way from surrender. As long as that is the case, I think the S&P 500 is a market you should be trying to sell on rallies.

In terms of the US consumer, earnings calls have been fairly alarming, and this is something that a lot of people will be paying attention to. It's difficult to picture the S&P 500 taking off to the upside as long as it appears that the US consumer is beginning to collapse. Granted, it may outperform many of its global competitors, but that is not guarantee that it will be beneficial. You don't want to be in the "less awful" category.

To be honest, I wouldn't have anything to do with the stock market right now; it's much too unpredictable and certainly too hazardous. We'd have to clear the 4150 level at the very least to consider this a market reversal, which doesn't seem to be happening anytime soon. As a result, I think the market is one in which you, like many other players, will continue to fade rallies.