S&P 500 Price Forecast – S&P 500 Has a Slight Start to the Week

US Stock Market Forecast Video for 27.06.23

S&P 500 Technical Analysis

The S&P 500 was rather quiet during the open on Monday, as we continue to see a little hesitation. Ultimately, whether or not the market can continue to go higher remains to be seen but certainly, it is still very bullish. We are forming a little bit of a bullish flag at the moment, but we will have to wait and see whether or not we get the upward pressure to actually kick off that signal. As things stand right now, the 4500 level above continues to be a major resistance barrier and will attract a lot of attention. Obviously, if we can break above there it would be a very bullish sign in the S&P 500 that would go much higher.

On the other hand, if we turn around and break down below the 4300 level, that opens up significant selling pressure. As things stand right now, I think we are simply going back and forth and figuring out what to do with ourselves. We are in a roughly 200-point range at the moment and will continue to trade the market in this matter. The 50-Day EMA is racing toward that 4300 level, so that makes a certain amount of sense that it could offer support as well.

Over the next week, we have to worry about end-of-month rebalancing, so it does tend to be a little bit more bullish than bearish, especially on the last trading day of the month, as managers will have to buy stocks that all of their investors will expect to see. That being said, I would anticipate a lot of noisy behavior in the meantime, so you have to keep in mind that you will need to be nimble and trade short-term changes. We still look like we favor the upside in general, but with this being the case I think we have a situation where position sizing will be crucial, due to the fact that it’s going to be difficult to get this lean toward one direction, I would assume that pullbacks will be thought of as value opportunities.

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