By S&P 500 Forecast: Continues to Find Buyers on Dips – 20 September 2022
The market is likely to continue to see the 50-Day EMA come into the picture as well, as the indicator will more likely than not be paid close attention to.
Stock markets are crashing again
The fact that we have formed 2 candlesticks in a row that was shaped like a hammer suggests there should be plenty of buyers. However, there’s also plenty of resistance above, and it is worth noting that the massive candlestick from last week shows signs of significant various pressure, and these candlesticks almost never happen in a vacuum. Ultimately, a short-term rally should be a selling opportunity at the first signs of exhaustion.
The market is likely to continue to see the 50-Day EMA come into the picture as well, as the indicator will more likely than not be paid close attention to. Not only is it a common indicator to pay attention to, but it’s also worth noting that it sits right at the 4000 level. The 4000 level is an area where a lot of people will be looking at as a potential shorting opportunity because it is a large, round, psychologically significant figure. Because of this, the market is likely to see a lot of noisy behavior but given enough time I do think that it’s likely that we continue to see negativity, especially if the Federal Reserve is going to be aggressively tight. I do think that’s going to be the case, so a short-term rally is more likely set up as a nice opportunity to short yet again. In fact, it’s not until the Federal Reserve changes its behavior or even its statement to make me think about buying this market, as they have been so dead set on slowing down the inflation situation.
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