S&P 500 Price Forecast – Stock Markets Get a Boost on Perceived Fed Bailout

US Stock Market Forecast Video for 15.03.23

S&P 500 Technical Analysis

The S&P 500 has rallied significantly during the trading session on Tuesday to reach toward the 3950 level. This is an area that of course has been important multiple times, so I think it’s probably only a matter of time before we see sellers here as well. I like the idea of fading this market, because it’s getting a little exuberant suddenly due to the fact that they believe that the Federal Reserve is going to step in and save everybody, just as they have for the last 14 years. However, inflation is still raging, and that is going to continue to cause issues.

Even if we do rally from here, the 4000 level above will be a target, and therefore I think it’s a situation where we would see a lot of noise and headline nonsense as traders try to guess what the Federal Reserve is going to do next, which quite frankly I don’t even think the Federal Reserve knows what it’s going to do next as the incompetence is obvious at this point.

I do believe there is a certain amount of resistance and a ceiling in the market at the 4000 level, so any signs of exhaustion in that area I would be more than willing to start shorting. If we break down below the 3800 level underneath, that opens up a move down to the 3600 level. Expect a lot of volatility, but ultimately I think this is a situation where we have a lot of uncertainty, and that breeds a lot of opportunities to lose money if you’re not careful.

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