Advertisement
Advertisement

S&P 500 Price Forecast – S&P 500 Finds Buyers After Initial Selloff

By:
Christopher Lewis
Published: Feb 3, 2023, 18:02 GMT+00:00

The S&P 500 E-mini contract initially sold off during the trading session on Friday but found enough buyers underneath to turn things around. By doing so, the market looks as if it is trying to take off to the upside yet again.

Wall Street, FX Empire

In this article:

US Stock Market Forecast Video for 06.02.23

S&P 500 Technical Analysis

The S&P 500 E-mini contract initially fell during the trading session on Friday but found enough buyers underneath to turn the market around. By doing so, it looks as if we are trying to take off to the upside and break above the 4200 level. Quite frankly, this is a bit surprising considering that the Federal Reserve has been so adamant in its talk of tight monetary policy, despite the fact that Wall Street believes they are going to have to cut rates by the end of the year.

Whether or not this is true is completely irrelevant, because the reality is that the market is choosing to ignore reality anyway. This happens from time to time and is quite common when you are in massive bubbles. We have seen a massive popping of a bull last year; it will be interesting to see how this plays out given enough time. If we were to break down below the bottom of the candlestick for the trading session on Friday, that would make it a “hanging man”, which then opens up the possibility of a move down to the 200-Day EMA, which is sitting right around the 4000 level.

Anything below there could be rather negative, and could open up a move down to the 3900 level. Alternatively, if we turn around and break above the 4200 level, then it’s likely that this market just looking towards the 4300 level, which is a large, round, psychologically significant figure that has had interest previously.

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.

Did you find this article useful?

Advertisement