S&P 500 Price Forecast – S&P 500 Drops Lower

US Stock Market Forecast Video for 23.06.23

S&P 500 Technical Analysis

The S&P 500 drafted a little bit lower during the trading session on Thursday, as we continue to see traders recognize gravity finally. The markets had gotten far ahead of themselves and even attempted to break out above the 4500 level just a few sessions ago, this has been a relatively negative move, but when looked at through the prism of the longer-term chart, you can see it was necessary. Whether or not this means anything for the longer-term remains to be seen, but it still has to prove itself as far as being a bearish type of situation.

Ultimately, this is a situation where I think the market will eventually find buyers, but you need to let the market do it for you, not trying to front-run any type of situation. The 4300 level underneath should be massive support, but we are nowhere near there at the moment. I think we are looking for some type of supportive daily candlestick, and it is very likely that it’s coming. After all, the “FOMO trade” is very real in the United States at the moment.

That being said, markets don’t go in one direction forever, and that might be part of what you are seeing here. Regardless, protecting your trading capital will be the most important thing you can do in this type of environment, as there has been so much damage done. If we do continue to go higher, and eventually take out the 4500 level, then the market will almost certainly try to take out the old highs. That being said, it’s going to take another bout of momentum to make that happen, so we need some type of catalyst.

With that being said, we have a situation where the market will continue to be noisy, so therefore it’s not necessary to jump in with a huge position right away. Scaling into a position with little bits and pieces makes the most sense, as it will protect you from untold damage. All of that being said, it’s not until we break down below the 50-Day EMA that I would be concerned of the overall trend.

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