S&P 500 Price Forecast – Stock Markets Trying to Break Out

US Stock Market Forecast Video for 13.07.23

S&P 500 Technical Analysis

The S&P 500 has rallied significantly after the CPI numbers in the United States came out much cooler than anticipated. Because of this, the market is likely to continue to see upward trajectory, as we have been making higher lows along the way. In fact, we have just broken out of a major ascending triangle, and it measures for a 120 point move.

Underneath, the 4400 level offers quite a bit of support, right along with the 50-Day EMA just below there. Ultimately, I think the 4300 level is a major support level for traders in general, so as long as we stay above there, we are still very much in an uptrend. All things being equal, Wall Street is completely ignoring the fact that the Federal Reserve is looking to raise interest rates, and as long as that is going to be the case stocks will continue to go higher. This is especially true with anything that falls within the “AI narrative”, which has been a major driver of the markets in general anyway.

With this, I think you’ve got a situation where you have no real reason to start shorting this market, and as long as it is going to be the case and the fact that more money goes flooding into the system, traders will chase performance going forward, therefore I think it’s probably a scenario where no matter what happens, there will be plenty of buyers willing to jump in and take advantage of this.

Shorting the market is all but impossible, at least until we break down below the 50-Day EMA underneath, which is very difficult to imagine. If we were to do that, then more likely than not you would see a lot of follow-through in other risk appetite assets.

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