Stock Markets Continue to Attempt a Recovery

Technical Analysis of the S&P 500

The S&P 500 is aiming to reach the recent selloff peak of 3900, and I believe we may be in for some minor difficulties. There will likely be a lot of noise because of the job statistics that will be released on Friday from the United States. I think a selling opportunity will likely arise sooner rather than later because I think it is likely just a matter of time until we see tiredness enter the market.

The fools on Wall Street are still trying to persuade themselves that the Federal Reserve would take action to safeguard the stock market, but, let's be honest, every time they believe that will be the case, reality kicks in and drives the market down. I believe the market can only go so far as the 50 Day EMA is now hovering around the 4000 level. On the other side, it would also be unfavorable if we reverse course and break below the 3850 mark.

The interest rate problems are not the least of the reasons we are in a decline, but we also need to be concerned about profits and, of course, inflation difficulties. In the end, this is a market that, given enough time, is undoubtedly preparing for a shorting opportunity, but we need to see indications of tiredness in order to be short once again. In the end, I believe that this market will finally attempt to retest the lows. But if we were to surpass the 4000 mark, that would undoubtedly be significant.