S&P 500 Technical Analysis
The S&P 500 has gone back and forth during the trading session on Wednesday as we continue to see a bit of confusion. That being said, think the market is comfortable sitting here as we have CPI figures coming out on Friday, so a lot of people will not be interested in trying to front-run the announcement. That being said, we have a significant amount of resistance just above at the 50 Day EMA, and of course, we have seen sellers continue to show up every time we get to it.
At this point, it’s very likely that we continue to see this market grind away in the short-term consolidation until we get the CPI figures, which will determine what the market believes the Federal Reserve will do next. Tightening monetary policy is something that a lot of people are afraid of, and now it’s a question of just how tight the Fed will have to get.
If we do break above the 50 Day EMA, the market is likely to get looking to reach the 4300 level. That’s an area that has been massive resistance previously, so breaking it above there would be a huge feat. On the other hand, if we break it down below the 4075 level gets the market is very bearish and opens up the possibility of a move down to the 4000 level, and then eventually the 3900 level given enough time. Regardless, this is a market that is going to continue to be very noisy, and therefore we will be better served to wait and see how the Friday candlestick closes before putting money toward.
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This article was originally posted on FX Empire