S&P 500 Forecast – Stock Markets Pull Back on Wednesday

US Stock Market Forecast Video for 22.06.23

S&P 500 Technical Analysis

It looks as if the S&P 500 is ready to continue seeing a little bit of profit-taking, but after the recent shot straight up in the air, that should probably not be a huge surprise. Because of this, I think we have to look at this through the prism of potential trouble, but I think you are also looking at it as a potential value trait if we pull back closer to the 4300 level. The market got way ahead of itself, so this is actually pretty healthy for the bulls, as well as those who are paying close attention to the economy, which of course does nothing to support the idea that the S&P 500 should be ripping to the outside the way it has.

Keep in mind that the index itself is heavily influenced by just a handful of stocks, so if and when they take the generals out and shoot them, it will almost certainly send this market much lower. If you are trading anything beyond artificial intelligence-themed stocks, you are probably losing money, but the index itself does not show the reality of the situation as we continue to see plenty of upward pressure on just a handful of names that move more than 25% of the index itself.

Central banks around the world remain very tight with monetary policy, so it does make a certain amount of sense that we would continue to see noise more than anything else. With this, I remain cautiously optimistic, but I also recognize that this pullback is probably something that’s desperately needed at this point in time. Look for some type of daily recovery on the daily chart to get involved, but in the meantime, you are probably best to stand on the sidelines because shorting a massively bullish market like this is a very difficult thing to do, as timing will become crucial. If that’s going to continue to be the case, then you need to look at this through the prism of a market that you don’t want to get overly aggressive with, so therefore I think this is a situation where a little bit of patience will probably go a long way.

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