S&P 500 Price Forecast – Stock Markets Continue to Show Hesitation

S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the course of trading on Tuesday, as we are starting to see plenty of volatility. The initial push to the upside was of course very bullish, but we failed just below the 4100 level, which would be expected by market memory coming into the picture. Ultimately, this is a market that is waiting for the CPI figures, which come out of America on Wednesday. Because of this, the market is more likely than not going to react violently to that announcement.

Keep in mind that the inflation figures are crucial to determine what the Federal Reserve does next, but at this point, it looks as if there is no “Fed put” out there, and as a result markets are on their own. We have an entire generation of traders out there that have never dealt with the market not having the Federal Reserve lifting it. Because of this, it is likely that we will see a lot of noisy behavior, and of course selling pressure. The 4000 level is an area that a lot of people pay close attention to, but there is nothing on this chart that suggests that we cannot go lower again.

Breaking down below the lows of the Tuesday session opens up the possibility of a move down to the 3900 level, maybe even the 3800 level. The alternate scenario is that CPI numbers are lower than anticipated, and therefore Wall Street may read into that as a potential reason for the Federal Reserve to back off of tightening a bit. If that were the case, we may go looking to the 4150 level, but I think that seems to be very unlikely.

US Stock Market Forecast Video for 11.05.22

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This article was originally posted on FX Empire