S&P 500 Price Forecast – Stock Markets Continue to Build Pressure

US Stock Market Forecast Video for 26.07.23

S&P 500 Technical Analysis

The S&P 500 has been very quiet during the early hours on Tuesday, as we continue to see a lot of noisy behavior, as we wait for the central bank meetings this week to conclude, right along with massive amounts of earnings. In fact, by the end of the session on Tuesday, you are looking at earnings from Alphabet, Meta, and Microsoft. In other words, there are some big and heavy hitters that will come into the picture.

That being said, the markets also will be paying close attention to central-bank announcements this week. Wednesday features the Federal Reserve, which obviously has a direct effect on what happens in the S&P 500, but we also have the European Central Bank on Thursday, followed by the Bank of Japan on Friday. While the latter 2 will necessarily have a direct effect on the US stock markets, they will have an effect on the currency markets, which in turn has a certain amount of influence on the S&P 500.

Underneath, the 4500 level should offer a bit of support, as it is a large, round, psychologically significant figure, and an area where we’ve seen some action previously. Regardless, the 50-Day EMA is close to the 4400 level and is trying to reach toward the upside as well. With that being said, I think you got a situation where the markets are still a “buy on the dip” type of situation, but we also have to keep in mind that the markets will be very noisy due to the occasional earnings announcement, so I do think you have to be very cautious with your position sizing and recognize that even though there are plenty of buyers out there, you should not jump “all in” when it comes to the stock market right away.

You want to build a position slowly and therefore caution is the better part of valor here. Regardless, I don’t have any interest whatsoever in trying to short this market, as the traders on Wall Street continue to pump out one narrative after another as to why stocks should continue to go higher.

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