S&P 500 Price Forecast – Stock Markets End the Week On a Positive Note

US Stock Market Forecast Video for 06.03.23

S&P 500 Technical Analysis

The S&P 500 has had a positive session on Friday, as traders on Wall Street continue to ignore economic concerns. That being said, this is a situation where we could easily see an attempt to get back to the 4100 level, but it’s also worth noting that the E-mini contract is trading right around the 200-Day EMA, so there is a certain amount of trouble to be expected.

Ultimately, this is a market that continues to try to guess what the Federal Reserve is going to do next, and it’s all about liquidity, and not so much about the economy itself. We have seen a lot of noise surrounding the Federal Reserve, and whether or not they are going to keep their monetary policy type. Quite frankly, this is a beast that the Federal Reserve created, meaning that there is going to be no easy solution.

At this juncture, most of Wall Street has convinced itself that the Federal Reserve will have to cut sooner rather than later, and that of course is what the Federal Reserve is pushing back on. It’s the fault of the Federal Reserve for giving out what is essentially free money for 14 years after the Great Financial Crisis. Now that the Federal Reserve seems to be serious about fighting inflation, nobody’s really listening.

The narrative of Wall Street changes every week, and you have to keep in mind that we have heard that “the consumer is in great shape”, “the Fed will have no choice but to cut”, “there is still all of that savings from the pandemic stimulus checks”, and a whole slew of other nonsensical narratives that are designed to sell you stock.

You should never forget, it’s Wall Street’s job to sell you stock, and that’s exactly what they are trying to do. Because of this, the fact that they have steadfastly refused to listen to the Federal Reserve, this is probably a market that continues to rally a bit, at least in the short term, but eventually something horrible is going to happen. Something will break quite drastically in what are obviously dysfunctional markets. Remember, the economy and the stock market are 2 different things.

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