S&P 500 Price Forecast – S&P 500 Continues to Consolidate

US Stock Market Forecast Video for 06.12.23

S&P 500 Technical Analysis

The S&P 500 fell a bit during the early hours on Tuesday as we continue to see a lot of noisy behavior overall. Ultimately, the S&P 500 is going to continue to suggest that the Federal Reserve will loose its monetary policy eventually, but at the end of the day, I think we also have a situation where the entirety of the trading population on Wall Street is looking for the Federal Reserve to bail everybody out, and they do think that it is probably only a matter of time before the “Santa Claus rally” has everybody buying. That being said, the rally may have already happened considering just how quickly we shot straight up in the air.

Ultimately, if we do pull back from here, and I don’t think it would be a huge surprise, the 4500 level is an area that should offer support, but it should also find plenty of support near the 4400 level as well. Because of this, I think the idea of pulling back and finding buyers will be the way forward. With this being the case, I like the idea of finding value occasionally, and quite frankly I have a lot of money on the sidelines that is waiting to be deployed. I think we are overdue for some type of correction, and that correction should give us an opportunity to find the value that traders will need.

On the other hand, if we turn around a break above the 4600 level, then the market could just continue its massive melt up higher, but I’m not looking for that to happen easily. At best, I would anticipate that the market is going to bounce around between the 4500 level in the 4600 levels over the next couple of weeks. As we get later into the month, keep in mind that a lot of volatility could occur, just due to the fact that there will be a lack of liquidity. Because of this, I think you need to be very cautious with your position sizing, as the market will continue to be very erratic going forward.

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