S&P 500 Forecast – Stock Markets Break Higher After Jobs Figure

US Stock Market Forecast Video for 05.06.23

S&P 500 Technical Analysis

The great thing about the Non-Farm Payroll announcement day is that no matter what the number is, you will see traders pull what they want out of the information. Now that we are well above the 4200 level, it looks as if S&P 500 is likely to go looking to the 4300 level, which was a major resistance barrier from a while back, so I do think that it makes a certain amount of sense that we would pull back from there and then test it again. If the market were to break above there, then it’s likely that we could go much higher.

If we pull back from here, then it looks very likely that the 4200 level could be supported, as it was previous resistance before. Because of this, I think you got a situation where it retains a bit of a “buy on the dips” mentality. It looks as if the traders on Wall Street believe that the Federal Reserve will come to save everybody, and therefore buyers continue to look at this as a sign that even though there were quite a few jobs added last month, the Federal Reserve will find a reason to stop tightening monetary policy due to stresses in the banking system. In a sense, we are back to that “bad news is good news, and good news is bad news” type of environment that drives most people nuts.

When you look at the chart, you certainly cannot short the S&P 500 anytime soon, despite the fact that it is probably a bit overdone at this point. Expect a lot of volatility, but also expect plenty of people willing to pick up the S&P 500 if it does fall from here as we have seen multiple times in the past.

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