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S&P 500 Forecast – Stock Markets Continue Consolidation

By:
Christopher Lewis
Updated: Mar 29, 2023, 15:23 GMT+00:00

The S&P 500 has rallied a bit during the trading session on Wednesday, as we are heading towards the top of the overall consolidation area.

Wall Street, FX Empire

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US Stock Market Forecast Video for 30.03.23

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Wednesday, reaching towards the 4050 level, then it’s likely that we need to go looking to the 4100 level above there. The 4100 level is an area that we have seen a lot of resistance previously, as well as support once we did break above there. Whether or not we can break above there now remains to be seen, but it certainly looks as if Wall Street is excited about the potential for interest rate cuts, even though the Federal Reserve continues to tell them that it is not going to happen.

It seems as if we are sitting just below a major resistance area that could invite a bit of selling pressure. At the first signs of exhaustion, I am more than willing to start shorting this market, but I don’t necessarily think that the S&P 500 is going to break down significantly, as the 200-Day EMA sits underneath, and of course the 50-Day EMA sits just below there as well. Both of those moving averages, although flat at the moment, do tend to cause a little bit of a reaction. If we were to break down below the candlestick from the Tuesday session, then it’s possible that we could go down to the 3950 level. After that, then we have the 3900 level, which is a significant support level.

In general, this is a market that continues to bounce around between the 3900 level on the bottom and the 4100 level on the top. If we do break above the 4100 level, then it’s possible that we could go looking to the 4200 level. In general, expect to see a lot of noisy behavior, and therefore I think we got a situation where you have to be very cautious with position sizing, as we are getting ready to head towards the blackout period of companies not being able to buy back shares, and of course we are just a few weeks away from another earnings season, which is probably going to be nothing short of disastrous. That being said, Wall Street always has some type of narrative to sell stock to retail traders.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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