Posted by Hải Âu (73..162.32) on July 09, 2022 at 08:00:10:
S&P 500 Technical Analysis
The S&P 500 is looking as if it is trying to threaten a breakout at this point, with the 3900 area, perhaps extending to the 3950 level, offering a major area of noise. We initially fell during the Friday session but then turned around to show resiliency. If we can break above the 3950 level, then it’s very likely that we will threaten the 4000 level. This would also have the market breaking above the 50 Day EMA, which obviously would be a very bullish side.
Nonetheless, the trend is still very much to the downside, and therefore I would not be truly impressed by a rally until it took out the 4200 level. That would take a Herculean effort, but it is worth noting that the most recent low was higher than the one before it. We still have not made a “higher high” yet, which would also be important because it would break the top of a “tweezer top” type of which set up just above.
Inflation and earnings write-downs are coming, so it’s a bit much to think that we are suddenly going to rip to the upside without any issues, but at the end of the day whatever price the market decides is correct, will end up being correct. You have to keep an open mind, despite the fact that the economy looks like it’s in real trouble at the moment. Wall Street is patiently waiting for Uncle Jerome to come save them, and there’s always a narrative that the Federal Reserve will come to save them sooner or later.