S&P 500 Price Forecast – Stock Market Continues to See Support Despite Recent Selling

US Stock Market Forecast Video for 28.04.23

S&P 500 Technical Analysis

The S&P 500 has rallied ever so slightly during the trading session on Thursday as we continue to see buyers on dips, but at this point it does start to look a little heavy, as the last couple of days have been very negative. On a short-term standpoint, we are probably a bit oversold but candlesticks like that typically don’t happen in a vacuum, and I would anticipate that we are more likely than not going to continue to see sellers.

It’s worth noting that the 50-Day EMA has offered a little bit of support, and we are hanging about the crucial 4100 level. Ultimately, the market is trying to break back into the previous consolidation area between 4100 to 4200, but I think that giving a little bit of room for the market to bounce and then show signs of exhaustion makes a certain amount of sense. On the other hand, if we break down below the candlestick for the Wednesday session, then it is likely that we are looking to the 200-Day EMA. After that, then we start to look at the 4000 handle for psychological support.

Remember, we are in the midst of earnings season and it does make a certain amount of sense at the S&P 500 rally today; after all we had strong earnings reports, most importantly from Meta/Facebook, which of course is a darling on Wall Street. We are still waiting to see what GDP will do as far as in effect on the market, but the fact that it was a little lighter than anticipated does suggest that perhaps the economy is starting to slow down.

Whether or not Wall Street chooses to price in that into the stock market, or start to focus on the fantasy that the Federal Reserve is going to come to bail everybody out with massive liquidity remains to be seen because quite frankly, that’s the only argument that we’ve been having for the entire year ultimately, I think this is a market that continues to be choppy but I do think we probably drift a little lower over the next several weeks.

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