S&P 500 Technical Analysis
The S&P 500 fell a bit in Tuesday’s trading session as we continue to cycle through the non-farm payroll week. Nancy Pelosi is going to Taiwan on Tuesday night, and there’s some tension there about what China will do. That being said, unless they do something quite drastic, it’s hard to imagine how this will have a lasting impact on anything related to the stock market.
The market has been parabolic for the past few sessions and finally slowed down on Monday. The question now is whether or not the market can truly break out above the 4200 level, or if we are just trying to build the necessary momentum. It’s been a bit of a mixed earnings season, and it’s worth noting that the S&P 500 is not an evenly weighted index. In other words, you should know that Apple has the largest position in the S&P 500, and therefore some companies will bias the index higher. That’s part of what we’re seeing here because the markets overall haven’t been as bullish as his chart suggests.
If we can break above the 4200 level, then this market will almost certainly test the 4300 level next. Even if that were the case, I anticipate that we’ll probably have to pull back a bit to find support. After all, you have to have people willing to chase the market to keep it going up in the air.
Video of the US stock market forecast from 03.08.22
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