S&P 500 Price Forecast – Presidents Day Trading Almost Nonexistent

Technical Analysis of the S&P 500

Monday's trading session saw the S&P 500 index closed, although there was some electronic trading in the futures markets. In the end, this market has been focusing on support that is close below, and Friday saw the formation of a nice-looking hammer. It is obviously encouraging and indicates that things may turn around as the consolidation process continues. For what it's worth, both the 50-Day EMA indicator and the 200-Day EMA indicator have gravitated toward the 4000 level below. Because of this, I think it will be extremely difficult to break down below the 4000 level. That's effectively your present "floor in the market," in my opinion.

Remember that the market is now influenced by earnings season, which is currently underway. At this point, I believe there is a chance for unpredictable behavior. Of course, there is also the possibility that the Federal Reserve will hold interest rates high for a longer period of time than expected. While the underlying economy is far from healthy, Wall Street has a tremendous capacity to see right past all of that, so do not be shocked at all to see Wall Street continue to increase. Stock dealers don't appear to be aware that inflation is still way too high.

If we were to break over the 4200 level above, that should be a level of interest, and if we did, I believe the S&P 500 might increase by another 100 points at that time. After that, a hypothetical 4500 level assault would be on the horizon. The next significant support level, which I see if we reverse course and go below that 4000 level, is the 3800 level, an area that has previously played a significant role.