The S&P 500 has shown itself to be noisy in the futures market heading through the holiday, as we see a lot of uncertainty around the world. All things been equal, the market would see quite a bit of support underneath at the 40 to 50 level, which is where we had bounced from previously. That level has been important multiple times, so it should not be a huge surprise if it happens again. That being said, the if the market were to test that area and break down below it, it is likely that we continue to go much lower, perhaps breaking through the 4200 level and bring in a fresh wave of fear.
S&P 500 Video 22.02.22
To the upside, I see multiple resistance levels at the 200 day EMA, the 4450 level, and the 50 day EMA which is sitting at the 4521 handle. All things being equal, this is a market that I think continues to see a lot of volatility, and of course fear due to the fact that we not only have the Ukraine/Russia issues, but we also have the inflationary concerns that will come back into the picture.
Until we see some type of certainty in the markets, it is difficult to imagine the buyers are going to come back into the picture and go to the upside. With the economic slowdown that is almost certainly coming in and of course the Federal Reserve tightening monetary policy, it is difficult to imagine that this market is going to be able to go higher for a bigger move.
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This article was originally posted on FX Empire