US Stock Market Continues to Stretch

Overnight, the S&P 500 E-mini contract gained some ground and crossed over the 50-Day EMA. But now we're moving into a zone that may be problematic.

Technical Analysis of the S&P 500

Overnight, the S&P 500 E-mini contract grew to the 4100 mark. Having said that, it is really important to pay attention to as we go into a region that can provide some problems. After all, there is often a lot of noise when you are situated between the 50-Day EMA and the 200-Day EMA. Additionally, with the release of the CPI statistics on Tuesday, a little amount of the market's overbought reality will start to emerge.

Not that we couldn't go higher; I'm simply watching for symptoms of tiredness so I can get engaged on the downhill. You must pay particular attention to the fact that this is more likely than not going to be a bear market bounce since none of the elements that had previously created so many problems have vanished. These may be pretty fascinating and violent, but I believe that there is enough of supply closer to the 200-Day EMA, which is about 4165.

As we are still in the thick of things and the economic picture is not promising, I will be showing diminishing indications of tiredness. The S&P 500 will also have to contend with the Federal Reserve's continued tightening of monetary policy, despite some people's refusal to accept this. For a time, it will be hard to make comparisons, and a recession may last for many quarters.