S&P 500 Price Forecast – S&P 500 Approaches Top of Its Recent Range

US Stock Market Forecast Video for 31.03.23

S&P 500 Technical Analysis

The S&P 500 has been bullish to kick off Thursday, as we are approaching the top of the trading range that the market has been in. Because of this, you have to wonder whether or not we can break out, but I do see a block of massive noise between 4140 and 4200. Because of this, I do think that we are getting close to some type of pullback. However, I don’t think the market really has anywhere to be at the moment, and certainly some technical traders will be looking at the recent action as a potential “inverse head and shoulders” to get excited about. I would normally agree, but with all of that noise just above, it’s a little less enticing.

On a pullback, I would anticipate that the market could go down to the 200-Day EMA or even the 50-Day EMA, both of which are conveniently sitting just above the psychologically important 4000 level. Anything below the 4000 level would then have the distinct possibility of dropping down to the crucial 3900 level, an area that has been massive support multiple times in the past. That area would be where we had the last swing low, and of course is a round number that a lot of people will be paying attention to. Below there, then we start to challenge the 3800 level.

The S&P 500 will have to deal with the fact that there are a lot of questions when it comes to interest rates going forward, because although Wall Street is begging for the Federal Reserve to cut rates, and quite frankly trying to push them into doing so, the reality is that as Wall Street tries to celebrate the idea of lower interest rates and push asset prices higher, it actually works against the idea of the Fed easing rates. This is a huge game of chicken, and somebody sooner or later is going to have to give up. Once that happens, we will more likely than not have a pretty big move but right now I think it’s still just a touch early to guess as to which way.

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