Jan 20, 2023 11:59
During the trading session on Thursday, the S&P 500 E-mini contract somewhat retraced after puncturing the 50-Day EMA very early in the day. We have seen a lot of noise come and go from this market, so it is still unclear whether or not we will continue to move down, but it is definitely worth investigating. It's important to note that we had retreated from both a significant downtrend line and the 200-Day EMA. The sum of all of that suggests to me that although climbing higher will be challenging, it is not completely impossible. Wall Street, after all, has a special flair for snubbing the obvious.
The earnings season hasn't been great so far, and the Federal Reserve will continue to be tighter than most people think. Due to this, the commentators on financial networks will need to promote a fresh "story" to raise the market. The Federal Reserve will have to step in and save everyone because it very probably has to do with declining business profitability. They won't do so as long as inflation is as high as it is in the US, is the short answer to this. In all honesty, the Federal Reserve has no interest in repeating its actions from the 1970s.
Although I believe that ultimately we will search for the 3800 level, there could be a few brief upswings in the meantime. That turns out to be a great chance to start shorting again at the first hint of tiredness. However, I would anticipate that we would go straight towards 4200 if we break over the 4050 mark.