S&P 500 Price Forecast – S&P 500 Looks Bullish

US Stock Market Forecast Video for 30.05.23

S&P 500 Technical Analysis

The S&P 500 rallied in the futures markets during the early hours on Monday, in relatively thin trading. All things being equal, this market eventually takes off to the upside and looks to the 4300 level. The 4300-level course is an area that many people would pay close attention to as it is a previous swing high; therefore, I think it’s likely that we will probably like the idea of buying dips, as the futures market clearly shows that there are still buyers out there. The underlying index was closed for the holiday, but this shows where traders are at least thinking the market will go.

A lot of this could come down to the fact that there has been a debt ceiling resolution, at least in theory, reached in the United States. Whether or not that continues to be true and whether or not we continue to go higher remains to be seen, but clearly that has a lot of traders breathing a sigh of relief, which is a bit odd considering that the debt ceiling drama is something that happens occasionally, and the US government always agrees to spend more. Nonetheless, that might just be a reason to go higher, or an excuse for that matter. If we do pull back from here, the 50-Day EMA should be supported, and therefore I think it’s probably only a matter of time before the buyers come back in and pick this up.

Looking at the chart, it’s very likely that the 4300 level will be tested, and if we break above there then the S&P 500 becomes more or less a “buy-and-hold” aftermarket, and therefore it’s likely that we could go much higher as Wall Street continues to focus on the idea that the Federal Reserve may have to loosen rates down the road. That being said, we also have a lot of volatility due to the fact that while Wall Street convinces itself that the Fed is going to loosen, the Federal Reserve itself and the Fed Fund Futures markets seem to disagree. In other words, we are going to continue to see a lot of noisy behavior. Furthermore, keep in mind that the index typically moves on only a handful of stocks, and it does not give us an idea of where the entire market is going.

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