Stock Markets Continue to Threaten Support

Technical Analysis of the S&P 500

Early on Tuesday, the S&P 500 rose in the E-mini contract, but later gave up gains. You should pay special attention to this region since it might signal the start of a move to the downside. The 3900 level course is a big, circular, psychologically important number. The 3800 level and maybe even the 3650 level will then be the target if we do collapse. In the end, this market will continue to see sellers whenever there is weariness, and I do believe that the market will continue to see a great deal of volatility because people are undoubtedly anxious about the route the economy will go in the future.

You must closely monitor how events develop since American interest rates are still rising, which obviously reduces the value of the stock market as well. In the end, I believe that certain markets will continue to be "sell on the rise" scenarios. Because it is a huge, round number with psychological significance, the 4000 level above is far more meaningful than the 3900 level. You need to be concerned about the 50-Day EMA if we break above that level.

Since the 50-Day EMA is presently lower around the 4060 level, I do believe that the return of the selling is most likely just a matter of time. I just don't see how the S&P 500 will increase over the long run until the Federal Reserve changes its entire monetary policy and mindset. Having said that, we are a little oversold, so a little relief bounce might occur. I'll use it to my advantage.