S&P 500 Forecast – Stock Market Rallies Back Into Consolidation

US Stock Market Forecast Video for 24.03.23

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Thursday as we continue to see a lot of noisy behavior. The trading session on Wednesday was all over the place, as we initially rallied, but after the Federal Reserve got done, we started to see sellers come back into the market. Nonetheless, we didn’t really change anything, and now we are just in this choppy consolidation area that we have been bouncing around in for what seems like a lifetime.

That being said, the 200-Day EMA offers a certain amount of resistance, but at the end of the day it’s probably worth paying close attention to the fact that the 4100 level above is going to be a significant resistance barrier. After all, we have seen a few sellers jump all over the market multiple times now. The 4100 level is a large, round, psychologically significant figure, but not nearly as psychologically significant as the 4000 level is, which is basically where we are hanging around right now.

Underneath, the 3900 level could offer a certain amount of support, and it would make a certain amount of sense that we would see an attempt for buyers to come in and pick up the market if we get down to that level. Anything below the 3900 level probably opens up a move down to the 3800 level after that, which was a significant swing low. That being said, the S&P 500 is a market that is all over the place due to the fact that there are so many conflicting signals out there.

Ultimately, this is a market that I think is trying to carve out some type of range, and therefore it’s likely that we will continue to see a lot of sideways volatility that is more likely than not going to be more of a sideways trading opportunity and therefore if you have a range bound system to be like using, this might be a good opportunity. The market continues to be driven on fears of liquidity, and of course fears of banking issues and a global economic slowdown.

For a look at all of today’s economic events, check out our economic calendar.