S&P 500 Price Forecast – Stocks Wait for CPI

US Stock Market Forecast Video for 10.05.23

S&P 500 Technical Analysis

The market is expected to continue viewing the 4200 level as a significant resistance barrier while regarding the 4000 level as a crucial support level. The 50-Day EMA is situated around the bottom of the Friday candlestick, while the 200-Day EMA is close to the 4000 level, offering significant support.

The S&P 500 is likely to move in line with traders’ risk appetite and whether or not they believe the Federal Reserve will bail out the market. While Wall Street firms are in consensus about this, the market has been exhibiting a lot of choppy and range-bound behavior as traders continue to figure things out. This is probably exacerbated by the CPI numbers coming out on Wednesday, which of course the market will be paying close attention to inflation and expectations of the next Federal Reserve meeting, currently pricing in only an 8% chance of an interest rate hike in June.

If the market shows signs of exhaustion near the 4200 level, it could provide an opportunity for traders to exit the market and continue playing within the same range. However, if the market breaks above the 4200 level, it could move up to the 4300 level, where the next significant resistance barrier is. Conversely, if the market falls below the 4000 level, it could experience a substantial drop, opening up the possibility of a move down to the 3800 level.

The market is expected to remain choppy throughout the summer, with concerns about central banks tightening globally, global slowing, and uncertainty surrounding the Federal Reserve’s actions. With these factors and ongoing earnings reports, there is a lot of noise out there, making it best to approach the market from a range-bound perspective. However, holding onto trades will be challenging at the moment.

In conclusion, the S&P 500 experienced quiet trading on Tuesday after digesting a series of economic announcements. The market is likely to continue considering the 4200 level as a significant resistance barrier, while the 4000 level could be a crucial support level. As the market is expected to remain choppy throughout the summer, investors are advised to monitor market conditions closely and approach it from a range-bound perspective. With concerns about central banks tightening globally, global slowing, and uncertainty surrounding the Federal Reserve’s actions, it is best to exercise caution when investing in the market.

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