S&P 500 Price Forecast – Stock Market Looking to Reach the Highs of the Range

US Stock Market Forecast Video for 11.05.23

S&P 500 Technical Analysis

The S&P 500 rallied a bit during the trading session on Wednesday in the early hours, as we continue to see the market try to get to the 4200 level. The 4200 level has been the major resistance barrier for a while, so it does make sense that the market will continue to test that region. If we do break above it, that would obviously be a very bullish sign, as traders around the world continue to bet that central banks are going to back off of their monetary policy.

Ultimately, the CPI number coming out cooler than anticipated on Wednesday suggests that traders will start to bet on the Federal Reserve trying to loosen monetary policy, which of course is nonsense, but it is the narrative that the market has been following. The 50-Day EMA sits right around the 4100 level, and is rising. If we were to break down below there, then it’s likely that the market could go down to the 4000 level. The 4000 level is the bottom of the overall consolidation area that I see, but there is something bigger afoot. When you look at the chart, something is starting to become a little bit more interesting.

When you look at the chart, it does not take much imagination to see a potential megaphone pattern, which is possibly a negative sign. This is when volatility picks up, but you continue to see a struggle to continue holding on to gain. It’s a bit early to trade that pattern, but it is a potential thing to pay attention to.

If we do break above the 4200 level, then it’s possible that we could see a move to the 4300 level, which is another resistance barrier. Anything above there should be a longer term “buy-and-hold signal”, and therefore I think that you have a potentially big move at that point. If we were to break down below the 4000 level, then it’s possible that we could go looking to the 3800 level underneath which is a major support level. Ultimately, the only thing you can probably count on is going to be a lot of volatility.

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