S&P 500 Price Forecast – Stock Markets Get Killed on Monday
Posted On June 14, 2022
[view original post
S&P 500 Technical Analysis
The S&P 500 has gapped lower to kick off the Monday session, and then accelerated to the downside. The 3800 level is an area that previously had been supported, and now it looks like we are in a complete free-for-all to the downside. Ultimately, I think it’s likely that we are looking to the 3700 level, perhaps by the time you read this.
Rallies at this point should be thought of as shorting opportunities, at the first signs of exhaustion. At this point, there’s nothing good on this chart, nor is there anything good in the idea of fundamentals as well. After all, the interest rates in the 10-year note have jumped over 3.25%, which has scared the markets quite drastically. At this point, it looks like the Federal Reserve will have to tighten monetary policy drastically, especially after the CPI numbers on Friday came out much hotter than anticipated.
It’s obvious that the Federal Reserve does not care about Wall Street, lease at the moment, so until we see massive disruptions in the credit markets, it’s very unlikely that the Fed is going to do anything to save Wall Street for once. Obviously, this will be a short-term situation, but right now looks like we have much further to go. Rallies at this point will more likely than not be” bear market rallies”, meaning that we would see massive bounces, which get sold off quite drastically. At this point, I’ve got no interest in buying this market, unless of course, the Federal Reserve changes its overall stance. We are nowhere near that at the moment, so selling rallies will continue to work.
US Stock Market Forecast Video for 14.06.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE: