S&P 500 Forecast – Stock Markets Rally With Open of the Week

Technical Analysis of the S&P 500

As New York traders continued to rejoice over the concept that wage inflation decreased from 0.4% month over month to the figure of 0.3% that we received on Friday, the S&P 500 rose strongly throughout the trading session on Monday. In other words, I believe they will be disappointed to learn that the Federal Reserve will not alter its stance. That gets me to my point: tomorrow at 9 AM New York time, Jerome Powell will be speaking. This is another another of the games Wall Street has been playing with the Federal Reserve. He will almost certainly say something to attempt to calm down the markets once again.

I'm searching for indicators of tiredness so I can start shorting as a result. Given that we are situated between the 50-Day EMA and the 200-Day EMA, it stands to reason that we can experience noise and weariness in this region. As a result, I will be shorting the market and watching for indications that momentum is waning. In addition, the CPI figures are due out on Thursday, which may come as a big surprise to the markets. The earnings season officially begins on Friday when the banks report in the morning.

In other words, despite the fact that the market is quite optimistic in the near term, there are many factors out there that might enter the picture and lead to issues. Sincere to say, neither I nor the majority of longer-term traders believe we are out of the woods just yet.