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

By:
Christopher Lewis
Published: Jun 9, 2023, 16:22 GMT+00:00

The S&P 500 has continued its upward trajectory on Friday, as we continue to see plenty of buyers.

Wall Street, FX Empire

In this article:

US Stock Market Forecast Video for 12.06.23

S&P 500 Technical Analysis

The S&P 500 has rallied a bit on Friday yet again, as we continue to see a lot of money flowing into the stock market. At this point, we are breaking above the 4300 level and it’s likely that we will continue to see a lot of traders chase this market, because quite frankly once you hit the “FOMO trade”, markets can really start to take off rather quickly. Ultimately, this is a situation where short-term pullbacks will continue to be a buying opportunity, due to the fact that there will be plenty of traders that have not participated.

Underneath, the 4200 level will continue to be important, and therefore I think people will probably try to jump back into the market if we get to that area, as it is a large, round, psychologically significant figure, and an area where the 50-Day EMA is rapidly racing toward. Furthermore, the 4200 level was once a major resistance barrier, so the so-called “market memory” could come into play if we get anywhere near there, offering an opportunity to find quite a bit of support.

All things being equal, this is not an equally weighted index, and it is just a handful of technology stocks that tend to move this market. With that being the case, you have to pay attention to all of the “big boys”, and therefore it’s likely that we have a situation where just a handful of stocks will continue to determine where this index goes. All things being equal, I don’t have any interest in shorting this market, despite the fact that the economy does not justify a higher stock market. This is all about the idea of liquidity again, and whether or not the Federal Reserve will continue to bail out Wall Street. The Federal Reserve has a meeting next week, and it is possible that could come into the picture. With that being the case, I think it’s probably a situation where we continue to see a lot of hesitation to short this market, but volatility will probably jump back into the market from time to time between now and then.

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.

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