S&P 500 Price Forecast – Stock Markets Test Major Resistance

US Stock Market Forecast Video for 17.04.23

S&P 500 Technical Analysis

The S&P 500 rallied a bit during the trading session on Friday, to test the 4200 level. The 4200 level is an area that has been a major ceiling in the market, and therefore I think you need to pay close attention to the fact that we could not break above there. By pulling back, this could give us an opportunity to pick up more buying pressure, but at the end of the day it’s more important to pay close attention to the fact that we are hanging around in this area between 4200 on the top, and 3900 on the bottom.

We are in the midst of earnings season, so that of course could cause some major issues, but ultimately this is a situation where Wall Street has the amazing ability to ignore reality, as the only thing they tend to care about these days is going to be whether or not they get enough liquidity coming out of the Federal Reserve. Traders continue to believe that Jerome Powell will come and save them, so don’t be surprised if we do break out. The technical analysis suggests that we are at least trying to build up the overall momentum to make that happen.

If we break down below 4100, then it looks like we are heading back into the bottom of the overall consolidation area, which is closer to the 3900 level. Ultimately, I think this is a market that is prime for a bit of a pullback, and quite frankly is probably healthy at this point. I think this is a situation where you have to look at it through the prism of looking for value, because while I do not necessarily think that the economy supports the stock market, the reality is that the dream and the narrative do. As long as Wall Street continues to assume that the Federal Reserve is going to save them given enough time, there will be a bit of a bid underneath to the market, keeping it somewhat elevated, despite the fact that if you were to listen the fundamentals, there’s absolutely no reason for it to be as high as it is.

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