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

US Stock Market Forecast Video for 21.03.23

S&P 500 Technical Analysis

The S&P 500 initially fell hard during the trading session on Monday, but then turned around at the 3900 level in the futures market as we continue to see a lot of hope out there that the Federal Reserve may stop tightening. This is based upon the idea that there are now troubles in the banking system globally, that of course will be a major problem that has people believing that liquidity will be offered.

That being said, there are a lot of concerns when it comes to inflation out there, and whether or not the Federal Reserve sticks with that remains to be seen. If they do in fact stick with that route, then it’s likely that we will see a lot of noisy behavior in this general region. If we were to break down below the 3900 level in the futures market, then it opens up the possibility of a move down to the 3800 level. The 3800 level was a swing low, and therefore we might as well look at that as a floor in the market in the short term.

Regardless, the Wednesday session will be very important as the Federal Reserve will make a decision as to whether or not the inflation concerns out there are more important or if they are going to save Wall Street again. Wall Street obviously believes that they are about to get a bailout, so it’s probably worth paying close attention on what they believe as they have spent the last 14 years pushing the Federal Reserve around.

If we were to turn on a break above the 200-Day EMA, then it’s possible that the S&P 500 could take off to the upside, perhaps reaching towards the 4200 level. Regardless, I think we’ve got a situation where you probably have a lot of choppy and noisy behavior between now and the end of the Wednesday session, and therefore you need to be cautious with your position sizing and probably not read too much into every little move that we have.

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