S&P 500 Forecast – Markets Look a Bit Overdone

US Stock Market Forecast Video for 04.04.23

S&P 500 Technical Analysis

The S&P 500 has done very little during the trading session on Monday, as it looks like we may be a little stretched at this point. We are right in the middle of a major consolidation area from the previous consolidation block, and of course just broke through the 4100 level on Friday. We also have the jobs number to worry about on Friday this week, and of course the market will be closed as it is Good Friday at the same time. In other words, a lot of traders will not be able to react to what the employment figures are, so this week could be a bit strange.

If we break back below the 4100 level, I anticipate at that point we would probably see the market dropped towards the 4000 level as it is where the 50-Day EMA and the 200-Day EMA indicators are currently sitting. They are flat, and it’s worth noting that at least the 50-Day EMA is trying to turn things around and show signs of life, but right now they probably make more or less a nice target if we do break down.

If we do take off to the upside, then the 4200 level could be an area of interest, as it had been previous resistance, and we sold off from. If we can break above that, it would obviously be a very bullish sign, but if we see signs of exhaustion between here and there, it could signal that the market is ready to roll over again. In that area, it would make a lot of sense to see a pullback. That being said, if we do get that breakout to the upside, the S&P 500 could find itself reaching towards the 4300 level rather quickly. Furthermore, if we were to break above the 4200 level, at that point I would assume that we are in the longer term bullish trend, as it would be such a huge breach to the upside after what had been a very ugly market.

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