The S&P 500 is rallying again during the trading session on Tuesday to reach the crucial 4500 level in the futures market. If we can break above here and stay above there, then it is very likely that we may have seen the S&P 500 trying to turn everything around. That being said, the next battle will be the 4600 level, which is where we had seen a small “double top.”
S&P 500 Video 23.03.22
The market will continue to be very noisy in general, especially as we have so many different fundamental reasons to think that the volatility is going to get worse, not better. However, it is worth noting that traders are starting to come to grips with the idea of the Federal Reserve raising interest rates, so that may be a fundamental factor the people are starting to ignore again.
Looking at this chart, if we were to break down below the 50 Day EMA, then it is possible that we break down but right now it certainly looks as if the market is going to ignore most things and simply rally. At this point, there is probably a certain amount of FOMO being seen on the charts as well, so it is what it is.
I expect a lot of choppy and volatile noise, but it is probably worth noting that the rally has been parabolic, so one has to wonder how many more days in a row we can get this? That being said, I think we have to be very cautious.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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