S&P 500 Price Forecast – Stock Markets Continue to Pause

Christopher Lewis
Published: Jun 6, 2023, 14:52 GMT+00:00

The S&P 500 has gone back and forth during the trading session on Tuesday as we continue to see a lot of noisy behavior.

Wall st, FX Empire

In this article:

US Stock Market Forecast Video for 07.06.23

S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the trading session on Tuesday, as we are hanging around just below the 4300 level. This is a large, round, psychologically significant figure, and an area that has offered quite a bit of resistance in the past. If we were to pull back from here, and I do think that’s very possible, I think there should see plenty of support underneath near the 4200 level. Ultimately, I think the S&P 500 has a lot of work to do before we can build up enough momentum to go much higher. If we do break down below the 4200 level, then it’s very likely that we could go looking to the 50-Day EMA.

If we were to break above the 4300 level, then it’s likely that we could continue to go much higher, perhaps opening a move to the 4500 level. For that matter, I think if we do break above the 4300 level, that will be the last vestiges of resistance, and it will become more or less a “buy-and-hold” type of situation. Looking at this chart, the market should continue to see a lot of noise more than anything else, but the fact that we shot straight up in the air does suggest that at the very least we need to go sideways in order to build up the necessary momentum. A pullback on the other hand could offer a little bit of a buying opportunity, as it could offer value.

However, if we were to break down below the 50-Day EMA, then we could have a shot at breaking down significantly. I do think there are a lot of economic headwinds out there, but clearly Wall Street doesn’t want to hear it right now. We have a Federal Reserve meeting next week that will have a massive influence on the market, but at this point I think Wall Street still wants to “whistle past the graveyard.” Either way, as things stand right now looks like we are in an uptrend, and therefore I don’t wish to fight against the trend in general.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?