S&P 500 Price Forecast – Stocks Pull Back

US Stock Market Forecast Video for 01.06.23

S&P 500 Technical Analysis

The S&P 500 has pulled back just a bit during the trading session on Wednesday, as we have seen a lot of noisy behavior right around the 4200 level. The 4200 level is a large, round, psychologically significant figure, and therefore it does make a certain amount of sense that we have seen pressure. That being said, this is a market that has continued to see a lot of buyers on dips, therefore I think it makes a certain amount of sense that if we see signs of support and perhaps even a turnaround to the upside, then the market could go back to the upside.

The 50-Day EMA underneath offers a certain amount of support, right around the 4125 level, and that makes that area of particular interest. The market should continue to see a lot of buyers taking advantage of the 50-Day EMA indicator as it is a very commonly used support level. The 4100 level is also an area that could be important, followed by the 200-Day EMA. In other words, even though we are in the midst of pulling back, it is probably only a matter of time before we see buyers coming back and take advantage of cheaper prices.

That being said, I don’t necessarily think that you need to be the first person to jump in, but you can take advantage of any momentum shifts. On the upside, if we were to break above the highs during the trading session on Tuesday, then it’s possible that we could go looking to the 4300 level. The 4300 level was an area that we had seen a lot of resistance previously, and therefore I think would offer a bit of a short-term ceiling. Anything above there then allows the S&P 500 to be more of a “buy-and-hold” market. Ultimately, I think this is a situation where we have plenty of noisy behavior, but I do think that ultimately this is market that should go much higher, until something changes or until Wall Street actually starts to pay attention to the Federal Reserve.

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