S&P 500 Price Forecast – Stock Markets Remain in Range

Technical Analysis of the S&P 500

The S&P 500 originally declined during Friday's trading session before turning around and displaying signs of life close to the 3800 mark. It's not a great surprise to see that we bounce from the 3800 level since it's a level where we've seen noise in the past. Despite the fact that the futures market was closed on Monday, the CFD markets were basically telling us the same thing, that we were still in the same general area.

The fact that the 50-Day EMA is just above the 3900 level and is moving a little lower does indicate that it will be difficult for us to go over that level. There should be a sizable pocket of noise all the way up to the 4000 level if we can break above that region. To put it another way, I would probably be a vendor of indicators of weariness.

On the other hand, if we were to fall through the 3800 level, we may only reach the 3700 level or even the 3600 level. I do believe that the market is now experiencing a lot of negative and that we will ultimately decline. We could certainly fall considerably lower if we break down below the 3600 barrier.

A lot of people are worried about the Federal Reserve and interest rates, so the market should continue to be affected by those worries. I'll continue to trade this market using fading rallies.