S&P 500 Price Forecast – Stock Markets Pause

US Stock Market Forecast Video for 01.08.23

S&P 500 Technical Analysis

The S&P 500 initially dipped a bit during the trading session on Monday, but at this point it’s likely that we continue to see a lot of upward pressure, but we also are in the midst of earnings season, so this does cause a lot of noisy behavior. That being said, the market is likely to continue to see more of a “buy on the dip” attitude, as it seems like Wall Street is able to come up with a narrative regardless of what is going on. Underneath, I think the 4500 level is a significant support level, because it is not only previous resistance, but it is also psychologically important.

The 50-Day EMA is also racing toward that area, so I think it comes into the picture as well, and therefore I think that any pullback at this point in time has to be looked at as a potential value opportunity. Regardless of what the economy is doing or what the economy is not doing, the S&P 500 looks as if it is ready to continue going higher. Momentum seems to be the only thing driving it more than anything else, and at the end of the day that’s really all that matters, that it’s going higher.

While I do expect the occasional pullback in choppy behavior, the reality is I don’t expect any type of major pullback. With this, I like the idea of looking at pullbacks as a potential buying opportunity, and I don’t have any interest in trying to get too cute with the market at this point. After all, I believe this is a situation where it would take something pretty drastic to turn the trend around, despite the fact that the economic figures are actually getting worse. Sooner or later, we will have a major selloff, but it does not look as if we have one right now. That being said, if we were to break down below the 50-Day EMA, then I might pull the record and exit the market, but until then I don’t see any reason to get short of this situation right now. Caution is the better part of valor.

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