Stock Markets Trying to Stabilize

The S&P 500 has rallied ever so slightly during the trading session on Monday but still looks as if it is threatened overall. Ultimately, this is a market that I think continues to look for some type of stability or a reason to go higher. The 50 Day EMA is starting to slump lower in the futures contract, reaching towards the 200 Day EMA. If it breaks down below there it will form the so-called “death cross.” The indicator is very negative, and it could send this pair much lower from a longer-term standpoint.

S&P 500 Video 15.03.22

At this point, it is very likely that the market will continue to find sellers on rallies, as we clearly are starting to break down somewhat significantly. On the upside, you could make an argument for a little bit of a falling wedge, which is technically a bullish pattern, but we would need to break much higher to make that thing kick-off.

The 4100 level underneath seems to be a rather significant support, so a break down below that level could open up a move down to the 4000 level, which is a large, round, psychologically significant figure. This market continues to suffer at the hands of the Federal Reserve tightening monetary policy and concerns about global growth with a supply-chain nightmare currently being played out.

Earnings are more than likely going to continue to be revised lower, so I think at this point time there is no real catalyst for the S&P 500 to take off to the upside, unless of course the Federal Reserve changes its course and suddenly sounds dovish.

For a look at all of today’s economic events, check out our economic calendar.