S&P 500 Price Forecast – S&P 500 Recovers in Overnight Trading

US Stock Market Forecast Video for 12.07.23

S&P 500 Technical Analysis

The S&P 500 rallied a bit during the trading session on Tuesday, as overnight electronic trading pushed the market higher. That being said, the market looks as if it is trying to go to the 4500 level above, which is a large, round, psychologically significant figure, and an area where we have offered quite a bit of resistance in the futures market.

Underneath, the 4400 level offers a bit of support, where we formed a hammer during the previous session. The session before that was a bit of an inverted hammer, so I think at this point we’ve got a scenario where we continue to go back and forth, with the market showing quite a bit of noisy behavior, and as we are grinding higher, it is like we are trying to force our way through the 4500 level and go much higher. In fact, you could make an argument that we are forming a bit of an ascending triangle, opening up a move above of about 120 points if we can clear the 4500 level.

On the downside, if we were to break down below the 4350 level, then it opens up a significant attempt on the 50-Day EMA to find whether or not there is going to be technical support there. Keep in mind that there’s only a handful of companies that are moving the S&P 500 right now, and therefore you need to pay attention to all the usual suspects, pretty much any stock that has anything to do with artificial intelligence is driving this index higher.

The Federal Reserve is going to keep monetary policy tight, but it seems like the Wall Street crowd is not overly concerned, at least not at the moment. Yes, we are heading toward a recession, but that also does not seem to be something that people are worried about either. Remember, the economy and the stock market are 2 different things, so trade what’s actually happening, not what should happen, something that a lot of us are guilty of at times.

For a look at all of today’s economic events, check out our economic calendar.