S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the trading session on Monday as we continue to threaten a major breakdown. The 4100 level is an area that has offered a significant amount of support multiple times, and it does suggest that perhaps we are going to try to fight here. However, if we break down below that level, it opens up more momentum to the downside. At that juncture, I would anticipate a move down to the 4000 level is very likely, as it is a large, round, psychologically significant figure.

Breaking down below the 4000 level would be catastrophic for this market. Quite frankly, there is nothing on this chart that screams that you should be buying. Short-term rallies that show signs of exhaustion are selling opportunities. The market would have to break above the 4300 level to get bullish enough for me to get involved in the upside. The market continues to see a lot of volatility, and course concerns when it comes to interest rates spiking the way they have.

Furthermore, there are serious concerns about the global economy slowing down, and some of the bigger movers of the market out there are starting to fall as well. As long as that is going to be the case, it is very difficult to imagine a scenario where you should get long of the S&P 500. The futures market is at least trying to stabilize a bit, but all it would take is a little bit of a push to send this market much lower.

US Stock Market Forecast Video for 03.05.22

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