S&P 500 Price Forecast – Stock Markets Continue to Show Choppiness

US Stock Market Forecast Video for 16.02.23

S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the course of the trading session on Wednesday, as we continue to see a lot of nonsensical noise more than anything else. As we are in the midst of earnings season, it makes sense that we would see a lot of noisy behavior. If we can break down below the 4058 level, that could open up a move down to the moving averages underneath, right around the 50-Day EMA and the 200-Day EMA.

Those moving averages of course attract a lot of attention, so therefore it’s likely that we would see a bit of a support. If we break down below there, then the market is likely to go down to the 3900 level, perhaps even down to the 3800 level after that. The 3800 level is a massive amount of support, so if we were to break down below there is likely that we would see a huge plunge. On the other hand, if we turn around and take out the 4200 level, then the market is likely to go much higher, perhaps opening up the possibility of a move to the 4500 level.

All things being equal, I think that the market will continue to see reasons to get volatile, but as we have recently seen a lot of games being played with options, it makes sense that we would see this type of volatility. Lately, they have been running up the zero days to expiration options in order to make big profits, only to let them fall again. This type of manipulation typically make something break sooner or later.

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