S&P 500 Price Forecast – Stock Markets Eagerly Await Federal Reserve

US Stock Market Forecast Video for 27.07.23

S&P 500 Technical Analysis

The S&P 500 has pulled back a bit during the trading session on Wednesday as we are waiting to sort out what the Federal Reserve is going to do later in the day. Because of this, the market is going to be very volatile, and of course we also have the European Central Bank announcement in less than 24 hours, so one could anticipate quite a bit of choppy volatility. At this point, I think a pullback is more likely than not going to happen, so I do think that it is probably going to be a situation where value hunters will continue to come back into the market.

Keep in mind that we are in the midst of earnings season as well, so with that being the case it’s likely that we will see quite a bit of noisy trading regardless. With that being said, I think this is a market value hunters come back to time and time again, with an eye on the 4500 level assuming we get some type of corrective pullback. On the other hand, we could just simply go straight up in the air, because that is something that we have seen the stock markets do quite a bit this year.

Regardless, this is a market that I have no interest in selling, simply due to the fact that it’s almost impossible to short the index. Remember, the S&P 500 is not an equal weighted index, so it only takes a couple of major stocks to push the thing higher, and therefore you can make an argument that it is not designed to fall for any significant amount of time.

If we start to see a selloff, you may do better looking toward buying bonds if there is some type of fear out there. After all, the last thing you want to do is get caught in some type of short squeeze, and that of course is something that could easily happen as we are in the midst of that earnings season. With that, caution is the better part of valor, and you need to be cautious with your position size, but it’s clear that you can only be trading in one particular direction.

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