S&P 500 Price Forecast – Stock Markets Continue to Look Tight

US Stock Market Forecast Video for 21.04.23

S&P 500 Technical Analysis

The S&P 500 initially fell during the trading session on Thursday, and then just continued to drop. That being said, we are in a relatively well-defined range at the moment, therefore I think it’s a bit difficult to get overly aggressive in one direction or the other. I think you are looking for the 4200 level to continue to offer a bit of noise in the form of short-term resistance, just like the 4100 level underneath as support. In other words, I think this is a situation where the market is going to continue to see a lot of choppiness and noisy behavior.

When I look at this chart, it’s also worth noting that the 50-Day EMA is sitting just below the support level and is rising, so that’s probably something worth paying attention to as well. That being said, after that we then have the 200-Day EMA coming into the picture, and then eventually the 4000 level which of course will offer a significant amount of psychological importance.

If we can break out to the upside, then the 4300 level would be a significant target, and then eventually we could go above there. However, that would take an extreme amount of bullishness, something that I think we might be missing at the moment, especially as we are sitting in the middle of earnings season, which is obviously a time when you can have a significant amount of noise coming into the market and causing issues.

This is especially true when companies such as Tesla have such a dismal earnings calls, but as you probably know by now, Wall Street is focusing more or less on liquidity, and not so much on the fundamentals or whether or not companies are actually profitable. It’s a game about the Federal Reserve, and Wall Street believes that the Federal Reserve is going to back off of its tight monetary policy by the end of the year. Whether or not that actually happens is a completely different question altogether, but there certainly seems to be a vigorous debate about that at the moment.

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