S&P 500 Price Forecast – Stock Markets End the Week With a Bang
US Stock Market Forecast Video for 29.05.23
S&P 500 Technical Analysis
The S&P 500 rallied a bit during the course of the trading session on Friday as we continue to see the same tight range being threatened. The 4200 level has been important for quite some time, so it does look like we are threatening to break out yet again. If we can break above the 4200 level, it opens up the possibility of moving toward the 4300 level. Ultimately, this is a situation where you see many “buy on the dips” attitudes. Therefore, it’s worth paying close attention to the 50-Day EMA underneath, as it offers a little technical support and attracts a lot of interest. If we were to break down below it, that obviously would change a lot of things.
Breaking down below the 50-Day EMA opens up the possibility of a move down to the 200-Day EMA. The 200-Day EMA underneath is going to be an area that we need to pay close attention to, and then of course the 4000 level just below there. When I look at the longer-term chart, I can still make an argument that we are in a range between the 3800 level underneath at the bottom of the range, and the 4200 level at the top. Nonetheless, it is worth noting that the buyers have been very aggressive as of late, therefore I think it’s only a matter of time before we have multiple buyers jump back in and try to pick up the market again.
Obviously, Wall Street believes that the market will continue to see the Federal Reserve perhaps think about loosening monetary policy, while I believe that it is a delusion. Nonetheless, momentum is still on the upside and therefore it’s worth paying close attention to. Shorting this market is going to be very difficult at this moment, but when you are in a bubble, and I do believe that we are in a bubble in multiple assets, it is quite common to see a significant rally and a timeframe of strength like we are in right now. The fundamentals do not line up with price action, and sooner or later we are going to have to resolve the two.
For a look at all of today’s economic events, check out our economic calendar.