S&P 500 Price Prediction - Futures Hit Early

Technical Analysis of the S&P 500

During Thursday's trading session, the S&P 500 futures market plummeted sharply, going below the 3900 level. The market seems to be set to continue falling deeper, although a little comeback may be required beforehand. That's reasonable. We can't keep going in the same route because, honestly, people will eventually stop fearing. However, since the S&P 500's overall fundamental outlook remains bleak, I would not use this as a chance to go long.

Short-term rallies, as we have seen recently, are more likely to turn into selling opportunities. Looking at this chart, I believe the 4100 level above is a major resistance barrier that we will not be able to pass, at least not very soon. The Federal Reserve will have to intervene to preserve the market, but it is not yet prepared to do so. To be honest, the current inflationary situation in America is simply too dangerous to be concerned about Wall Street. Surprisingly, most Wall Street traders have never seen a situation in which the Federal Reserve did not bail them out.

This will be entertaining to see, but it does not have to be costly. At these low levels, keep your position size moderate, acknowledge that the trend is almost probably to the negative, and don't "try to be a hero." In this market, a little patience and money management should go a long way over many weeks. Remember that volatility may work for or against you, therefore I would advise everyone to remain careful.