S&P 500 Price Forecast – S&P 500 E-mini Contract Slams Into Major Resistance

US Stock Market Forecast Video for 30.01.23

S&P 500 Technical Analysis

The S&P 500 E-mini contract has initially tried to rally near the 4100 level, but then started to struggle almost immediately, turning around and forming a bit of a shooting star. At this point, the market looks as if it is running out of momentum, and I do think that it is probably only a matter of time before we start to fall again. However, the alternative scenario is that we break out above the top of the candlestick, and then go looking to the 4200 level.

Breaking down below the bottom the candlestick opens up the possibility of a move down to the 200-Day EMA, which is currently sitting at the psychologically significant 4000 level. The 4000 level of course has a lot of attention attached to it, so we break down below there, then it’s likely that we can look into the 50-Day EMA. All things being equal, if we break down below the 50-Day EMA, it will almost certainly send this market much lower.

In general, I think we are going to continue to see a lot of noisy behavior, mainly due to the fact that the markets are trying to figure out what to do about the Federal Reserve, and of course the Federal Reserve has a major meeting next week. If they do some type of hawkish statement and 50 basis points, that will crush this market quite drastically. On the other hand, if the Federal Reserve were to sound a bit more dovish, that kids in the S&P 500 flying. Nonetheless, there seems to be some type of delusion out there on Wall Street part that the Federal Reserve is suddenly going to change monetary policy.

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