S&P 500 Weekly Price Forecast – S&P 500 Continues to See Overhead Pressure

US Stock Market Forecast Video for 31.07.23

S&P 500 Technical Analysis

As the S&P 500 broke above the 4500 level, as we started to see a lot of momentum into the market. However, we have seen a bit of hesitation since then, and of course at this point in time we might be a little stretched. I think the S&P 500 is probably due for some type of pullback, and the 4400 level could be the target for short-sellers to push the market down toward. At that point, I think there would be a lot of value hunters willing to get involved, as the 4400 level has previously been important. Just below there, we have the 4300 level, which of course is a major well.

All things being equal, this is a market that I think you continue to buy on the dips but it does look a bit tired. However, if we were to break above the top of the last couple of weekly candlesticks, that opens up a move toward the 4800 level. I would obviously be very bullish, but I think at this point in time as we are drifting through earnings season, it’s going to be difficult to get overly aggressive as we will get the occasional headline that has people selling. In general, I don’t have any interest in shorting this market, I think it has proven its resiliency, and of course Wall Street will come up with the next narrative somewhat soon, now that the “AI narrative” is starting to lose some of that steam. Don’t believe me? Just think about blockchain, metaverse, the reopening trade, “Americans have plenty of savings”, etc. There’s always going to be some type of sales pitch.

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