S&P 500 Price Forecast – S&P 500 Pulls Back

US Stock Market Forecast Video for 06.07.23

S&P 500 Technical Analysis

The S&P 500 has pulled back a bit during the trading session on Wednesday, as the 4500 level has offered significant resistance. It now looks as if the market is going to try to find buyers underneath, perhaps offering a bit of value on some type of pullback. If we do pullback enough, then I think that there will be buyers, especially near the 4400 level, perhaps even all the way down to the 4300 level, where the 50-Day EMA comes into the picture.

The market has been very bullish for some time, so a little bit of a pullback probably makes quite a bit of sense, and therefore you have to look at this through the prism of whether or not you can get enough value. The 50-Day EMA rising of course will offer a little bit of a support level, so as long as we could stay above there, one would have to assume that the S&P 500 will continue to rally. However, if we were to break down below there, then the market is likely to go looking to the 4200 level, possibly even the 200-Day EMA.

On the other hand, if we were to turn around and take above the 4500 level, then the market could go looking to the 4600 level, perhaps even higher than that. It would kick off the next “leg higher”, so therefore I think on a daily close above the 4500 level, we would almost certainly see quite a bit more money flow into the market, and therefore see a bit of momentum chasing. I think this is a market that continues to be very noisy, but I don’t have any interest in shorting this market, due to the fact that the momentum is very real, and of course the S&P 500 is driven by just a handful of stocks, therefore I think you’ve got a situation where you only have to pay attention to all of the biggest stocks, due to the fact that it is not an equal weighted index, therefore this is not a reflection on all 500 stocks, rather the top 8 or 10.

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