S&P 500 Price Forecast – Stock Markets Get Volatile Move After CPI

US Stock Market Forecast Video for 13.04.23

S&P 500 Technical Analysis

The S&P 500 initially rallied during the trading session but then turned right back around to show signs of hesitation. Quite frankly, this is a market that is somewhat schizophrenic at the moment, as there’s no real clarity as to where we are going next. CPI numbers came out a little lower than anticipated, but it’s probably also worth noting that we are in the midst of earnings season. As earnings season starts, there will be a lot of confusion and noise out there that could throw the market around. It is because of this that trading indices right now might be a bit difficult.

I still believe that short-term rallies will probably be faded, at least until we break above the 4200 level. The 4200 level continues to be an area that a lot of traders have been paying attention to and has historically been important. Looking at the chart, if we can break above the 4200 level it’s possible that we could go much higher. Ultimately, the 4200 level looks to be the top of the range, and therefore we will probably see a lot are noise in this area. That being said, if we break down from here I see several areas that could offer both short and long-term support.

The 4100 level has been support recently, and I do think there would be a certain amount of buying pressure in that area. Underneath there, you have the 50-Day EMA which is at 4040 and rising, followed by the 200-Day EMA which is just above the 4000 handle. Both of those could offer support, and a move below there then opens up a move down to the 3900 level. It is at 3900 that I see the bottom of the overall range at the moment, and therefore I would expect to see the market defended quite vehemently.

That being said, it’s probably worth noting that you need to be very cautious with your position size at the moment, because things will be extraordinarily noisy on a day-to-day basis during earnings season as per usual. Beyond that, there are a lot of macroeconomic issues out there as well, so be careful.

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