S&P 500 Price Forecast – S&P 500 Sits on Support

US Stock Market Forecast Video for 04.08.23

S&P 500 Technical Analysis

The S&P 500 drifted a little bit lower during early trading on Thursday, as it looks like we are willing to sit on top of support. We are roughly where the previous ascending triangle broke out from, so it does make a certain amount of sense that we hang around this area. The 50-Day EMA is racing higher, and I do think that it is probably only a matter of time before that would offer a certain amount of support.

Ultimately, I think the market is going to go looking to the 4600 level above, but it needs to get the jobs figures out of the way on Friday. Because of this, I would anticipate a little bit of stabilization, but that’s probably about as good as it gets at this point. The market will continue to move on a handful of companies, and the fact that Apple is reporting right along with Amazon suggests that we could see a rather significant move as well.

Regardless, a lot of this is going to come down to the idea of whether or not the overall trend can continue to the upside, or if we have a situation where we finally turn around. I think a deeper correction is possible, but quite frankly it will probably be somewhat short-lived as analysts still expect this market to go higher over the next several months. The 200-Day EMA is hanging around the 4200 level, so that is something that has to be paid close attention to. As long as we are above that level, we are technically in an uptrend, and a lot of traders will look at it as such. Besides, Wall Street will come up with some type of narrative to start selling stocks to retail traders again, after all, that’s the business that they are in.

There are concerns about the bond market and interest rates rising, but at this point I think that is somewhat limited in its influence, but you do need to keep an eye on whether or not interest rates start spiking. While the session on Wednesday was kind of rough, the reality is that it’s just a blip on the radar of the longer-term trend.

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