S&P 500 Price Forecast – S&P 500 Continues to Stretch Higher

US Stock Market Forecast Video for 07.03.23

S&P 500 Technical Analysis

On Monday, the S&P 500 showed gains, setting a positive tone for the start of the week. The market is now targeting the 4100 level in the short term, with potential for 4200 after that. However, the 4200 level has posed difficulties in the past, and there are concerns about the US economy, leaving the duration of this market rally uncertain.

Interest rates in America are an important factor to watch, as they directly affect the stock market. Higher rates lead to lower stock prices, while lower rates lead to higher stock prices. The Federal Reserve’s ability to combat inflation for an extended period is key to the market’s success, with investors anticipating a bailout, as has been the case for the past 14 years. However, the current market situation is the Federal Reserve’s responsibility, and they must now take measures to rectify it.

The 50-Day EMA and the 200-Day EMA are currently hovering around the 4000 level, indicating the possibility of consolidation. If there is a pullback, the 4000 level may offer support. A further drop could lead to a move towards the 3900 level, which aligns with the previous downtrend line.

Overall, the market is expected to remain volatile and uncertain, so it is wise to keep positions reasonable and be prepared for noisy behavior. Quite frankly it’s going to be easy to be shaken out of positions, so don’t be stubborn with your trading targets, and recognize that this is literally a back-and-forth day trading type of environment that we are dealing with right now, so gains and losses should both be very small.

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