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S&P 500 Price Forecast – S&P 500 Continues to Build Support

By:
Christopher Lewis
Published: Apr 23, 2024, 12:52 GMT+00:00

The S&P 500 continues to build support on Tuesday, as the geopolitical situation is getting better.

In this article:

S&P 500 Technical Analysis

The S&P 500 initially pulled back just a bit during the trading session on Tuesday to test the 5,000 level in the overnight trading hours but has turned around to show signs of life. Ultimately, this is a market that I do think is going to continue to pay close attention to the 5,000 level.

It does make a certain amount of sense so that we get a bit of a recovery as we have dropped as much as basically 7% over the last couple of weeks. And now value hunters and trend traders are going to jump into the situation and take advantage of cheap stocks. The Federal Reserve is likely to keep money tight for a while, but it looks like Wall Street is willing to look past it. Furthermore, we’ve had some decent earnings reports, so that of course helps. The escalation of war seems to have cooled off, so that helps.

So, all things being equal, considering that the trend had been so reliable for a while, it does make quite a bit of sense that we turn things around and start to bounce again. Keep in mind that the 50-day EMA is sitting just below the 5100 level, which is an area that I think is your target. If we were to break down below the lows of last week, then we could fall towards the 4,800 level. But right now, I think this is a situation where the buyers are eventually going to come in and take advantage of this dip, as you quite often see in long-term uptrends.

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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