S&P 500 Price Forecast – Stock Markets Have Volatile Opening for the Year

Technical Analysis of the S&P 500

In order to crash through the 50-Day EMA in the E-mini futures market at the start of the trading day on Tuesday, the S&P 500 gapped, but it later pulled back to close that gap. In the end, there probably will be support there, but I also believe there will be a lot of pushback there as well. I believe we continue to see a lot of loud activity since we have been congregating in the general area.

It's feasible that we may decline to the 3700 level or perhaps the 3600 level if we were to breach below the 3800 level. However, if we do break out to the upside, there is even more resistance close to the 200-Day EMA, which is located just at the 4000 level. I believe that at this moment, the only thing you can bet on is a lot of choppy activity. All else being equal, this market should end up being a good selling opportunity even if it rallies since there is also a downtrend line.

The Friday employment report will very probably have a significant impact on where we go next because, to put it bluntly, if it comes in hot enough, it will make people fear that the Federal Reserve will start tightening again. Beyond that, we need to be concerned about a global downturn and, obviously, profits that are going to plunge. In fact, given the continued high levels of market volatility and pessimism, it is extremely possible that the markets will see significant losses in the next year.