It is known that there is no topological group structure on the sphere, but all of the methods of proving it seem quite advanced and not immediately intuitive. It seems like there's a much easier way:
The left action of any non-identity element would be a continuous map, $f$, from $S^2$ to itself with no fixed points. Then you could define a continuous vector field on the sphere by taking the vector pointing from $x$ to $f(x)$.
This has a wrinkle when $f(x)=-x$, but it seems like that can be avoided by taking some $x$ sufficiently close to the identity so that $f(x)$ will be near $x$.
Presumably, there's a flaw in this argument, or it would be used. So what is it?
Yes, that will work. As you note you will have to make your argument that for $y$ near enough to $e$ you have $yx\ne-x$ for all $x$ exact. This will probably be a compactness argument.
Once you have done that you will have another answer to: Can $S^2$ be turned into a topological group?. It will be very similar in spirit to the first argument in the accepted answer.