S&P 500 Price Forecast – The Stock Market Continues to Look Threatened

US Stock Market Forecast Video for 27.04.23

S&P 500 Technical Analysis

The S&P 500 had a bit of a negative session early on Wednesday, as we are sitting right around the 4100 level. The 50-Day EMA sits underneath, and it could offer a significant amount of support. Ultimately, this is a situation where we would continue to see a lot of volatility, as we are in the midst of earnings season, which causes its own headlines. Furthermore, we continue to see a lot of concerns about the global growth situation, which obviously works against the S&P 500 as well.

Beyond that, the market continues to see a lot of noisy behavior, and I think that continues to cause a bit of hesitation. Yes, Wall Street will find a reason to push the bullish narrative before it’s all said and done, but sooner or later there is a certain amount of concern out there that it could collapse the entire narrative. That being said, at the moment, we are still hanging onto the very bottom of the consolidation area, but it’s worth noting that the extraordinarily negative candlestick for the previous session is the type of candlestick that does not typically happen in a vacuum. With that being the case, we could see more negative pressure and an attempt to get down to the 200-Day EMA, or perhaps even the psychologically important 4000 level.

At this juncture, I do think that we have a lot of noisy concerns out there and therefore I think we have to worry about whether or not the market will be able to hang on through all this volatility. That being said, keep in mind that a lot of the largest tech companies are giving earnings calls this week, so it should add to the volatility, not take away from it.

On the other hand, if we do take off above the 4200 level you have to look at that is a very bullish sign, and it could open up the possibility of a move all the way to the 4300 level. That being said, we continue to see a lot of volatility and therefore you can’t really count on much right now and you need to keep your position size reasonable until we get some type of impulsive candlestick that we can follow.

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