S&P 500 Forecast – The Stock Market Celebrate Poor Jobs Figures

US Stock Market Forecast Video for 06.11.23

S&P 500 Technical Analysis

The S&P 500 has rallied rather significantly early on Friday, as Wall Street is celebrating the idea of the last jobs data. After all, Wall Street looks for cheap and easy money, so the idea is that if the market were to get more flow, it would send stocks higher. Wall Street tends to celebrate poor economic conditions, which is exactly the opposite of what you are taught.

This is because loose monetary policy has them looking for assets to buy. That being said, the Federal Reserve is nowhere near loosening its monetary policy, so with that being said, the market is likely to continue to see a lot of noise based on the idea of what the next move of the Federal Reserve will be. That being said, we are at the top of a massive down trending channel, so I think at this point in time we likely will continue to see resistance.

At this point, the 4400 level is an area that we need to pay close attention to, but if we break down below the bottom of the candlestick for the trading session on Friday, then it becomes a shorting opportunity. If we break above the 4400 level, then we could change the overall trajectory, but right now I think a lot of this comes down to the idea of cheap money.

The market will continue to be very noisy, but we are a little bit overdone at this point, so I think it’s probably only a matter of time before we have to make a bigger decision, which of course is a situation where the market will continue to see volatility. All things being equal, this is a situation where the traders will continue to pay close attention to the Federal Reserve because that’s the only thing that matters to Wall Street traders.

With this being the case, I think you have to look at it through the prism of whether or not we get some type of breakdown to start shorting, or if we see an extension of this overbought condition. In general, I think this is a market that looks like we are going to continue to see massive volatility.

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