S&P 500 Price Forecast – Stock Markets Attempt to Stabilize

Technical Analysis of the S&P 500

In an effort to stabilize, the S&P 500 tried to rise throughout Tuesday's session. Currently, it is most likely just a matter of time before market players enter the picture and attempt to pick up a little amount of value, but I also think it is most likely only a matter of time before a rally is sold into. After all, the market is likely to maintain its generally erratic behavior, which seldom inspires much confidence. It's quite improbable that this market would take off for a longer-term rise without confidence.

I think we should be on the lookout for rallies to fizzle out at this point, and I do feel that it is likely just a matter of time until we see tiredness that we can capitalize on. You should be aware that there may be unexpected movements in either way as I do think the market will remain quite unpredictable. In the end, I believe the 3800 level, coupled with the 50-Day EMA close to the 4000 level, will be quite resistant.

It's feasible that we might go down to the 3600 level and perhaps even to the 3500 level if we break below the previous lows. It does make some sense that the stock market is still struggling as long as the Federal Reserve maintains its strict monetary policies. In the end, I believe that this market will continue to have a number of different headlines that will create problems, but over the longer term, I believe that there is still more downside to come.