S&P 500 Price Forecast – Stock Markets Quiet to Open Up Holiday Week

Technical Analysis of the S&P 500

The Monday trading session saw very little movement for the S&P 500 E-mini contract, which is currently sitting just over the 3950 level and just below the 200-Day EMA, which is at the 4025 level. In the end, I believe that the market will soon make a bigger decision, but for the time being it appears that Wall Street is still searching for the, so one would have to assume that there are some investors who are willing to purchase stocks on the basis of the notion of the "Santa Claus rally."

The 50-Day EMA, located precisely at the 3863 level, enters the picture if the market does break down from this point. I anticipate seeing a large degree of resistance to any selling in that range. The 3800 level and a more serious breakdown could be in danger if we fall below there.

The market is still in a downtrend, despite recent signs of a great recovery, and we have even seen the 200-Day EMA and the downtrend line enter the picture and provide at least some psychological resistance. Keeping this in mind, bear in mind that we are still trying to price in a recession.

We may observe a similar trend in the S&P 500 if the US currency strengthens more. Given enough time, I would fully expect the market to make a larger breakout, but since it is Thanksgiving week, it's highly likely that it may be waiting for that to happen.