S&P 500 Price Forecast – Stock Markets Continue to Kill Time

US Stock Market Forecast Video for 26.04.23

S&P 500 Technical Analysis

The S&P 500 fell a bit during the trading session on Tuesday, but at the end of the day we are still very much in a very tight range, and this does not look like a market that’s ready to make a bigger move. With that being said, I think you get a situation where you are just waiting to see what happens with earnings from several major companies, as the market tends to focus on just a handful of stocks, and of course the only other thing that they care about is liquidity.

As the Federal Reserve has completely distorted the markets over the last 14 years, none of this should be a surprise. We are currently trading in a 100 point range, and I don’t know that it will change very easily. Nonetheless, we will eventually get an impulsive candlestick that we can follow but right now it looks as if we are going to have to sit around and wait.

If we break above 4200 level, it opens up the possibility of a move to the 4300 level in which would obviously be a very bullish turn of events. However, if we turn around and break down below the 50-Day EMA, then it opens up a significant selling opportunity for the S&P 500, as it would almost certainly fall rather drastically from there. In that environment, I would anticipate a huge “risk off move” around the world. Nonetheless, there are a lot of questions asked right now about the global economy, and you should never underestimate the ability of Wall Street to completely look past the obvious.

The economy is slowing down, but Wall Street then starts to look toward the Federal Reserve and the possibility that they are going to stimulate yet again. Nonetheless, I think this is a bit of a joke, and therefore it should not be taken too seriously. Ultimately, this is a market that will continue to frustrate traders, as we are still going to get earnings reports from quite a few major players out there. Caution is the better part of valor, but if you are a short-term trader, this might be the market for you.

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