S&P 500 Price Forecast – Stock Markets Continue to See Noise

Christopher Lewis
Published: Jan 26, 2023, 17:03 GMT+00:00

After the GDP numbers came out for the initial fourth-quarter results of 2022, it’s obvious that the market has no idea what to do with this information.

Wall Street, FX Empire

In this article:

US Stock Market Forecast Video for 27.01.23

S&P 500 Technical Analysis

The S&P 500 is very noisy during the trading session on Thursday, as we initially tried to break above the 4060 level, but then pulled back to show signs of exhaustion. The previous downtrend line will come into the picture it offers significant resistance, but if we continue to draw from here, then we could go down to the 200-Day EMA, which is sitting at the 4000 level. The S&P 500 E-mini contract is trying to figure out what to do next, as we have seen so much in the way of choppy behavior.

On the other hand, if we break above the top of the candlestick for the trading session on Thursday, it opens up a move to the 4100 level. We are in the midst of a major amount of noise due to economic outlook, the Wall Street narrative that the Federal Reserve wants to somehow save them again, and of course the fact that we are in the midst of earnings season.

I think this sets up a very choppy environment that’s going to be difficult to deal with, and therefore you have to keep in mind that the position size of your trade is going to be crucial, and therefore it’s likely that you are going to have to be very nimble, and recognize that we have so much noise out there that just about anything can happen. Furthermore, you have to keep in mind that after the trading session, there will be earnings reports that could lead to gaps to the upside or downside, because quite frankly it’s been so noisy as of late I can’t remember the last time things have been this murky.

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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