S&P 500 Price Forecast – Stock Markets Continue to Find Buyers

US Stock Market Forecast Video for 22.05.23

S&P 500 Technical Analysis

The S&P 500 has rallied during the trading session on Friday, as we have broken above the 4200 level significantly. That being said, the market continues to see lackluster volume so it’ll be interesting to see how this plays out. With this being the case, short-term pullbacks could be a buying opportunity as the market almost certainly will go looking toward the 4300 level now. That being said, the market will continue to see a lot of buyers on dips from what I can tell, so that’s probably the main take away.

The 50-Day EMA is sitting just above the 4100 level and rising, so I would anticipate that it should offer a certain amount of support. If we reach that level, I anticipate that a lot of value hunters would come back into the market, trying to take advantage of the dip. All things being equal, I would not be a seller of this market quite yet, although there are a lot of things that the market seems to be ignoring so this is going to be interesting.

Keep in mind that the S&P 500 is not an equal weighted index, so just because the S&P 500 is rising does not necessarily mean that your favorite stock should be bought. It’s always the same handful of stocks that lead the index higher, so that’s probably something worth paying attention to as well. If we break above the 4300 level, then the market almost certainly is going to go much higher. On the other hand, if we continue to see a lot of concerns about the debt ceiling and interest rates, that could cause quite a bit of consternation in the minds of traders, sending risk appetite flying in both directions. I think at this point, you have to be cautiously optimistic that the keyword of course is going to be cautiously.

Ultimately, pay attention to the US dollar, that will probably have a bit of an influence as well, although it’s probably worth noting that the dollar has done fairly well over the last couple of days. With that being said, perhaps money is just finding his way into America to avoid other places.

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