US stock markets continue to work from a lower high

S&P 500 Weekly Technical Analysis

The S&P 500 had another rough week, falling to the 4387 level. The market will likely continue to view the 50-week EMA as a potential obstacle to near-term support. Ultimately, this is a market that I believe continues to experience strong downward pressure, which may cause the market to turn towards the 4100 level.

Keep in mind that there is a lot going on in the market right now, not the least of which is rising interest rates. Because of that, traders on Wall Street trying to figure out whether or not they’re going to be bailed out by the Fed, I think we’ll continue to see a lot of loud behavior. Rallies at this point still look a bit suspect, so at this point I would view signs of exhaustion as an opportunity to shorten again. You will probably need to pay more attention to short-term charts than longer-term ones, as there will be a lot of noise. Nonetheless, it certainly looks like we’re going to have a hard time finding a reason to go long.

Looking at this chart, if we were to fall below the 4100 level, chances are we could go for the 4000 level, maybe even fall below. Note that we have crossed a major uptrend line, so this is of course something that many long-term traders will also pay close attention to. At this point, things seem unstable to say the least.

S&P 500 Forecast Video 4/18/22

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