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S&P 500 Weekly Price Forecast – Stock Markets Threatened Major Resistance Barrier

By:
Christopher Lewis
Published: Mar 31, 2023, 16:40 GMT+00:00

The S&P 500 has rallied significantly during the course of the week, breaking above the 4100 level.

S&P 500, FX Empire

In this article:

S&P 500 Weekly Forecast Video for 03.04.23

S&P 500 Weekly Technical Analysis

The S&P 500 has pulled back just a bit during the course of the week, breaking below the 50-Week EMA. At this point, the market then shows signs that we are going to plow into a significant amount of resistance. Just above the 4100 level is quite a bit of noise that extends to the 4200 level, and therefore it’s probably only a matter of time before the sellers come in and cause some type of exhaustion. Ultimately, this is a situation where we have earnings season coming, and of course the blackout period of time where corporations can’t come in and pick up their own stock to try to inflate prices.

Keep an eye on what’s going on with the Federal Reserve and of course the interest rate market, because if it starts to spike again, that will most certainly send the stock market lower. At this point, we have broken above the 4100 level in the futures market, but it’s probably worth noting that this happened on Friday afternoon, when it’s just the Americans. After all, Wall Street seems to be permanently bullish under any circumstance, just due to the fact that it’s their job to sell stock to consumers. Nonetheless, it’s really not until we break above the 4200 level that we can see this market go much higher. At that point, then I could become bullish, lease for the short term.

Any pullback at this point that breaks below the bottom of the candlestick could send the S&P 500 down to the 3900 level, an area that has offered support in the past month. If we break down below that level, then it’s likely that we could go down to the 200-Week EMA, which is presently right around the 3750 level.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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