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

US Stock Market Forecast Video for 24.05.23

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Tuesday as we continue to threaten the 4200 level overall. Ultimately, this is a market that continues to pay attention to a handful of issues, not the least of which will be the debt ceiling problems in the United States. While it is very unlikely that the US government will default on debt, as long as the politicians in Washington DC continue to play games, it will cause significant volatility.

That being said, we are also paying close attention to inflation and whether or not the central bank may have to start loosening monetary policy. There are signs that inflation is starting to cool a bit, and now Wall Street will come up with a narrative that the Federal Reserve is clearly going to start cutting rates later this year. Whether or not that’s true remains to be seen, but as things stand right now, the Federal Reserve most decidedly has stated that they are going to stay tight for longer. In fact, a couple of the major voting members have suggested that there might be a few other interest rate hikes coming later this year. Because of this, we will continue to see a lot of momentum in this market in both directions, and therefore we will see many questions about the overall trend.

Underneath, we have the 50-Day EMA near the 4100 level that is rising, and that will offer a bit of dynamic support. If we do pull back from here, I would anticipate that a short-term pullback would be in the cards, and I don’t necessarily see the market falling apart because, quite frankly, Wall Street is doing everything it can to fight the Federal Reserve at the moment. On the other hand, if we were to break above the 4200 level handily, then it’s very likely that we go to the 4300 level, possibly start to enter a “buy-and-hold” situation as well. Whether or not that into being the case remains to be seen, but it is one of the scenarios that we need to keep in the back of her mind.

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