S&P 500 Price Forecast – Stock Markets Continue to Hover Around Major Moving Averages

US Stock Market Forecast Video for 24.02.23

S&P 500 Technical Analysis

The S&P 500 has been slightly negative during the trading session on Thursday as we continue to hover around a couple of major moving averages. As long as we are hanging around the 200-Day EMA and the 50-Day EMA moving averages, it’s very likely that there will be a lot of technical noise. Furthermore, we have the earnings season going on at the moment, which is always a bit of a mixed bag itself. In this environment, I don’t really have any interest in trying to put on big positions, but I do recognize that if we break down below the lows of the week, it’s very likely that we continue to drop towards the crucial 3900 level.

Adding even more noise to the fray is the fact that we are hanging around the 4000 level, an area that obviously has a lot of psychology attached to it. Because of this, I think we will continue to see noise and I don’t think it’s going anywhere anytime soon. With that being said, it’s very important understand that earnings announcements can have an outsized effect on the market at times, depending on what participants read into it. For example, Walmart recently suggested that they were going to see a lot of weakness in the consumer, and that most certainly rattled the market. However, there are other companies that will report, and people simply just don’t pay attention.

For the longest time, this has been about the idea of whether or not the Federal Reserve will continue to liquefy the markets, adding that cheap and easy money that most traders have never known any different from. As long as that’s going to be a concern, we need to understand that Wall Street is going to continue to throw tantrums occasionally, as it is convinced that the Federal Reserve will eventually save them with cheap money. That being said, inflation is much stickier than originally thought, and it seems like Wall Street is finally starting to come to terms with that possibility. Because of this, I think you will continue to see a lot of volatility, which typically means lower pricing.

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