S&P 500 Weekly Price Forecast – S&P 500 Continues to Find Buyers on Dips

S&P 500 Weekly Forecast Video for 29.05.23

S&P 500 Weekly Technical Analysis

The S&P 500 has fallen a bit during the course of the week only to turn around and show signs of life again. By doing so, it looks like the market is going to continue to threaten the 4200 level, if we can break above there is likely that the S&P 500 will go to at least 4300. Ultimately, this is a market that does not line up with fundamentals quite well, but that doesn’t matter. Ultimately, it all comes down to liquidity and whether or not the Federal Reserve is going to loose monetary policy.

Currently, Wall Street thinks that the Federal Reserve will have to loosen monetary policy due to issues in the banking system, and if that does come true, expect a flood of money coming into the stock market. On the other hand, if the Federal Reserve continues its type of monetary policy, that could cause a lot of havoc for the S&P 500, perhaps breaking down below the 50-Week EMA. The 4000 level underneath is a large, round, psychologically significant figure that could also offer a certain amount of support, so that might be worth paying attention to as well.

All things being equal, I would expect a lot of noisy behavior, but that’s basically the way it’s been for the last couple of months and I don’t know the longer term traders have an easy route at this point. That being said, if we do break above that crucial 4300 level, then I think you have about 300 points that the market could go looking to capture, perhaps offering a better set up for you longer term traders out there.

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