S&P 500 Price Forecast – Presidents Day Trading Almost Nonexistent

US Stock Market Forecast Video for 21.02.23

S&P 500 Technical Analysis

The S&P 500 index was closed during the trading session on Monday, but the futures markets traded limited electronic trading for the day. Ultimately, this is a market that has been looking at support just below, and Friday ended up forming a nice-looking hammer. That of course is a good sign, and it suggests that we could turn things around and continue the overall consolidation. For what it is worth, the 4000 level underneath has attracted both the 50-Day EMA indicator and the 200-Day EMA indicator. Because of this, I believe that the 4000 level is going to be very difficult to break down below. I think that is essentially your “floor in the market” currently.

Keep in mind that were in the midst of earnings season and that of course has its own influence on the market. I think at this point we could get erratic behavior, and of course we also have the specter of the Federal Reserve keeping interest rates hawkish for longer than anticipated. However, Wall Street has a great ability to look right past all that, so do not be surprised at all to see Wall Street go ahead and rally, despite the fact that the underlying economy is nowhere near healthy. Inflation is still far too hot, but stock traders don’t seem to be paying attention to that.

The 4200 level above should be an area of interest, so if we were to break above there, I think at that point the S&P 500 could climb another 100 points. Beyond that, then we would be looking at a potential attack of the 4500 level. Alternatively, if we turn around and break down below that 4000 level, the next major support level that I see is that the 3800 level, an area that has been important multiple times in the past.

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