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

US Stock Market Forecast Video for 02.03.23

S&P 500 Technical Analysis

The S&P 500 initially tried to rally during the trading session on Wednesday but gave up gains rather quickly as we continue to see a lot of negativity out there. Ultimately, the market is likely to continue to see a lot of noisy behavior and concerns around interest rates as they continue to spike. Because of this, the market is likely to continue to see noise, but it now looks as if we are more likely than not to drop from here.

The 3950 level is an area that a lot of people will be paying attention to, and if we break down below there it opens up the possibility of a move down to the 3900 level. The 3900 level has previously been supported, so a break down below there could then open up the possibility of a move down to the 3800 level. Alternatively, breaking down below there opens up a huge move to the downside, and therefore it could really start to accelerate if that were in fact happen.

The market would then see a lot of trouble underneath, perhaps down to the 3600 level, which was a major low previously. Furthermore, we are going through earnings season at the moment, that tends to cause quite a bit of volatility. Keep in mind the volatility tends to be very negative for the pricing of an index, as traders will not want to take a lot of risk in that scenario.

On the other hand, if we were to turn around and break above the 50-Day EMA and the 200-Day EMA above, then it’s possible that we could go to the 4100 level. I don’t necessarily think that’s going to happen, and I think that we will continue to see more of a “fade the rally” type of situation in this market going forward. I don’t necessarily think that we fall apart, just that I think there will continue to be a certain amount of negativity in general, and therefore you need to look at this through the prism of selling opportunities occurring occasionally.

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