S&P 500 Price Forecast – Stock Markets Continue to Pull Back

US Stock Market Forecast Video for 26.06.23

S&P 500 Technical Analysis

The S&P 500 has fallen a bit during the trading session on Friday as we continue to see a little bit of negativity and gravity come back into the market. Keep in mind that the S&P 500 has been overdone for a while, and now it looks like we are probably going to have to deal with the idea of a pullback. The 4300 level underneath will continue to be important, so pay close attention to that level, and now that the 50-Day EMA is racing toward that level it makes quite a bit of sense that we could continue to see that as a potential target for the short-sellers.

On the upside, if the market were to break above the highs of the trading session on Friday, that could change things, perhaps opening up the possibility of a move to the 4500 level. The 4500 level above is a major round figure that a lot of people will pay close attention to, and breaking above that level opens up the possibility of an attempt to get back to the all-time highs, but that remains to be seen. At the very least, we are pulling back in order to offer a little bit of value, because quite frankly the market cannot go straight up in the air forever.

Keep in mind that the S&P 500 is driven by just a handful of stocks, so there are really only about 10 that you need to pay attention to at best. You are talking about companies like Tesla, Microsoft, etc. As long as they do well, the S&P 500 will continue to go higher as it is designed to do so, and of course it is not an equal weighted index. That being said, the underlying internals are not necessarily that hot right now, and market breadth is anemic to say the least, not to mention the fact that volume is dropping yet again. In other words, look for dips to pick up bits and pieces of value, with the idea that there are plenty of stocks out there to short, but as far as the index it’s going to be very difficult to do so as per usual.

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