S&P 500 Price Forecast – Stock Markets Continue to React to Jerome Powell

US Stock Market Forecast Video for 16.12.22

S&P 500 Technical Analysis

The S&P 500 E-mini contract has plummeted during the trading session on Thursday as we continue to take into account everything that Jerome Powell had to say about staying tighter for longer, therefore Wall Street is coming to terms with the lack of “monetary methadone” that they have become so accustomed to. The market currently is trying to come to grips with the idea of whether or not policy will remain tight throughout 2023, and of course we will have several key factors coming into the picture over the next several days.

To begin with, there is options expiration on Friday so it could make the market a bit noisy, but once we start next week, there are couple of things that are going to come into play that could be important. To begin with, we will start to enter the blackout period, when companies cannot buy back their own stock. Beyond that, then we start to enter the holiday season with a serious lack of liquidity, which will have its own influence on where we go next.

Because of this, I’m looking at this through the prism of a market that is likely to continue to face a lot of trouble, but it may get a bit of a lift during the day on Friday due to brokerages covering options, especially as it is a massive amount this particular week. With that in mind, I think we’ve got a scenario where we are likely to continue seeing noisy behavior, but I think we could see a rather negative week next week.

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