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

By:
Christopher Lewis
Published: May 30, 2023, 15:08 GMT+00:00

The S&P 500 has continued to see upward momentum during the trading session on Tuesday, as traders came back from the Memorial Day holiday.

S&P 500, FX Empire

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US Stock Market Forecast Video for 31.05.23

S&P 500 Technical Analysis

The S&P 500 has had a sluggish trading session on Tuesday, as traders came back from the Memorial Day holiday in America. At this point, it looks like the S&P 500 is going to do everything he can to get to the 4300 level, an area that has previously been a major swing high. With that in mind, I do think that shorting this market is almost impossible at this point, because the stock market does tend to be very momentum driven in times like this. Because of this, be very cautious but recognize that we certainly look likely to test that 4300 level above. The 4300 level being broken opens up more of a “buy-and-hold” scenario, allowing for a much bigger move.

On the other hand, if we do turn around and show some type of negativity, then we could see this market truly start to take off to the downside, perhaps some type of shock to the system. However, I do think that any selloff will more likely than not be somewhat limited in its scope, therefore you have to look at it through the prism of buying on dips or finding some type of value. The 50-Day EMA sits just above the 4100 level, and that of course is something that is worth paying close attention to.

If we do break down below the 50-Day EMA, then we could go looking to the 200-Day EMA underneath, which is closer to the 4050 level. With this being the case, the market is likely to continue to see a lot of value hunters underneath, and therefore I think you’ve got a situation where we will eventually find a certain amount of a support, and therefore I think we have a situation where the patient traders out there will be rewarded for their diligence. If we break down below the 200-Day EMA, then things could get ugly but I don’t necessarily see that happening in this environment, unless of course the Federal Reserve absolutely shocks the market. There is a phrase that says something along the lines of a “rally that everyone hates.” This is the definition of that.

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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