S&P 500 Price Forecast – Stock Markets Running Out of Momentum

Technical Analysis of the S&P 500

During the trading session on Thursday, the S&P 500 E-mini contract fluctuated back and forth as it seemed that momentum was beginning to wane. As we ended up producing a significant shooting star during the previous session, the market is now expected to continue to receive a lot of inquiries regarding the probable direction of the stock market. It's probable that we will keep moving down and that the long-term downtrend will continue if we break back down below the 50-Day EMA. I would anticipate losing 3800 at that time and moving on to the 3600 level.

On the other hand, it's possible that the upside will be challenged further into the 4000 level if we were to break above the top of the shooting star from the Wednesday session.

However, I do believe that this is a situation where you should be looking for shorting opportunities as the Federal Reserve will have to continue tightening monetary policy. Of course, there is also the possibility that the market could receive a shock next week as the Federal Reserve returns to the scene with its monetary policy statement and of course the press conference that follows.

Wall Street continues to believe that the Federal Reserve will save it, despite the fact that the Fed has repeatedly said that it wants lower stock prices and to reduce demand.