S&P 500 Price Forecast – Stock Markets Continue to Search For a Bottom

Technical Analysis of the S&P 500

During Monday's trading session, the E-mini contract for the S&P 500 originally declined, but it has since recovered and begun to show signs of life. The market seemed to want to rally after doing this, but I understand that there is a lot of noise above. If we can return to the 4000 level, any rise at this point should be seen as a possible selling opportunity.

Remember that the market will be anticipating Jerome Powell's remarks, which will be quite tiresome since everyone already knows what he will say. For a lot of individuals, however, hope endures forever, so they will have to wait until the announcement.

3800 will be the objective if we were to break down below the candlestick's bottom from the previous couple of days. The 50-Day EMA is just 34 points above the 4000 level and slopes downward if we break above that level. Nothing out there tells me I should be purchasing equities, so at this time I am perfectly content to just wait for a chance to start shorting again at a higher level.

In light of this, the 3800 level has significance since a break through it increases the likelihood that we will test the lows once again and even fall further lower. I believe we are in the process of kicking off the second leg down because the enormous candlestick that occurred last week is the kind of candlestick that virtually never occurs in a vacuum.