S&P 500 Price Forecast – S&P 500 Continues to Trade in a Channel

US Stock Market Forecast Video for 20.07.23

S&P 500 Technical Analysis

The S&P 500 has done very little during the trading session on Wednesday, as we wait for major earnings calls from a slew of major companies. This will be the theme for the next couple of weeks, but at this point in time it shows that we are at the very top of an overall range, and I think this trading channel will continue to be important.

Short-term pullback should be buying opportunities as the market will continue to find plenty of drive higher over the longer term. That being said, a short-term pullback is more likely than not going to be a buying opportunity, especially near the 4500 level. The 4500 level courses a large, round, psychologically significant figure, and an area that previously had been major resistance. “Market memory” comes into the picture that point offering a potential buying opportunity.

On the other hand, if we were to break above the top of the channel, then it’s possible that the market could go looking to the 4700 level given enough time. That being said, we are stretched, and I think it makes more sense to pullback at this point especially as we have so many earnings calls over the next several days. Ultimately, the market is one that looks bullish, but I also recognize that it will only take bad earnings from a few major companies that could send this market tumbling. All things being equal, this is a market that needs to churn a little bit in order to pick up momentum.

Value hunters will be active in this market when they get some type of opportunity, and I think that continues to be the character of this market. After all, it is not an equally weighted index, so it will come down to a handful of the major companies yet again, so with this it is more likely than not going to be a situation where you will have to be patient, but you should get plenty of opportunities if you are. I have no interest in shorting this market, because it’s quite obvious that Wall Street is going to continue to trade the bullish narrative.

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