S&P 500 Price Forecast – Stock Markets Continue to Chop Back and Forth

US Stock Market Forecast Video for 20.04.23

S&P 500 Technical Analysis

The S&P 500 fell a bit during the trading session on Wednesday, but we are most certainly in a market that has been bullish for a while. Because of this, I think you’ve got a scenario where you could see this market go back and forth in a relatively small range. The 4100 level underneath of course is a short-term support level, and the 4200 level above is a short-term resistance barrier. Remember, we are in the midst of earnings season, and that of course will have a major influence on where we go next.

Earnings have been a bit mixed so far, but it seems like they have not been enough to spook the market. Because of this, I think you will have a market that is just sitting around and killing time, and I think this is a situation where you probably just trade in a short-term range. If you are looking for bigger moves, you need to see this market break out above the 4200 level, or below the 4100 level before you put any money to work. However, if you are short-term trader, then you probably do quite well using some type of range bound system. I suspect we probably continue to see a lot of noisy behavior, so therefore you will probably have to keep your position size reasonably small. Capital preservation is going to be paramount in this scenario, so I would not be a huge position holder at the moment. After all, we could see some type of earnings statement that spooks the market, and you could find yourself on the wrong side of the trade rather quickly in the blink of an eye.

Furthermore, there are a lot of important PMI numbers at the end of the week on Friday that a lot of people will be paying attention to, so this may continue to be a relatively choppy and quiet week until we get more economic figures coming out during the Friday session. Ultimately, it’s also worth looking that we are at the top of a bigger range as well, as marked on the chart.

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