S&P 500 Weekly Technical Analysis
The S&P 500 E-mini contract has rallied a bit during the trading week, touching the 50-Week EMA, and perhaps more importantly, getting near the top of the descending channel that we had been in. Ultimately, the market is likely to continue to see a lot of noisy behavior, and therefore if we can break out to the upside, that might blow through a liquidity pocket, opening up the possibility of a move to the 4200 level. It is worth noting that the last couple of weeks had formed hammers, and this candlestick looks like it is trying to continue that overall upward pressure.
If we do pull back from here, I think the 3800 level will be worth paying attention to as it was the area that the hammers formed at, and of course will attract a lot of attention because of that. Underneath there, then we have the 200-Week EMA, sitting right around the 3700 level. Anything below there would be extraordinarily bearish obviously.
That being said, right now Wall Street is still assuming that the Federal Reserve is going to start slowing down, and perhaps even cut rates later in the year in order to boost asset prices. Remember, the stock market tries to get out ahead of these things, despite the fact that the Federal Reserve swears up and down that there is no rate cut coming. In fact, they suggest that the interest rates in America are going to be higher for longer, although Wall Street still is having a hard time digesting that.
That being said, it’s probably worth noting that the earnings season is kicking off, so we could get a bit of a boost from that as well. With this, we have the perfect set up for volatility.
For a look at all of today’s economic events, check out our economic calendar.