S&P 500 Price Forecast – Stock Markets Dip Into the Weekend

US Stock Market Forecast Video for 24.04.23

S&P 500 Technical Analysis

The S&P 500 fell during the trading session on Friday as we continue to see a little bit of hesitation to try to break out. Keep in mind that the 4200 level above remains a significant technical level of resistance, so therefore I think you get a situation where it’s going to be difficult to get above there. That being said, underneath we have support at the 4100 level, and we’ve course had the 50-Day EMA racing toward that level as well, and that could cause even more support.

As we are in the midst of the earnings season, there are a lot of headline risks out there, and therefore you need to pay attention to how markets respond to earnings calls, and of course forward guidance. Keep in mind that the market is likely to continue to see 8 of the biggest companies in the United States continue to throw the S&P 500 around as they have made up roughly 2/3 of the gain this year. In other words, since we seek Tesla, Microsoft, Apple, and the usual suspects suggest that perhaps the economy is about to take a hit, then you can see serious trouble.

Looking at the chart, I think we continue to see a lot of back-and-forth trading, therefore I think you got a situation where you have to be very cautious with what you do as far as position sizing, because although we have a very well defined range, once we break out of it could be very brutal, therefore you could see a sudden and sharp move. However, once we break out of this range, then you have the ability to put on a bigger position size.

Range bound trading is more likely than not going to continue to be the case in the short term, so therefore you should probably gear up your trading account and trading positions to absorb that type of short-term volatility. Nonetheless, this is a market that I think is probably going to offer plenty of opportunity, but you need to be cautious and make sure that you don’t blow up your account in the process as the inertia that is being built up is quite large.

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