S&P 500 Price Forecast – S&P 500 Hits the 200-Day EMA in Futures Markets

Technical Analysis of the S&P 500

The S&P 500 gained some ground during Tuesday's trading session before colliding with the 200-Day EMA. The 200-Day EMA has repeatedly demonstrated its significance, and several algorithms are built around it. The market has gotten a little ahead of itself, and when you consider that it is just above the crucially psychologically significant 4000 level, you can see why. Although American inflation appears to be edging a little bit lower, the Federal Reserve still considers it to be unusually high. As a result, I believe it will likely not be long before the market returns to that understanding.

Add to it the fact that many key players' earnings outlooks have been dismal, and you have a scenario where, given enough time, a slam straight back down might occur. Remember the rally we had earlier this year? It appeared to be done, and we were prepared to resume long-term rallies. The fact that we haven't even attained that level does indicate that there will likely be a lot of apprehension in the future.

In fact, I would contend that the current economic climate is more dire than it was in the past. In any case, I believe a brief pullback is more likely than not. We can experience a deeper correction if we decline below the 3900 barrier. Remember that the Federal Reserve's members are still attempting to talk down the market, and sooner or later, they will probably succeed.