S&P 500 Price Forecast – Stock Markets Threatening Breakout

US Stock Market Forecast Video for 19.04.23

S&P 500 Technical Analysis

The S&P 500 has shown itself to be somewhat strong in the early hours on Tuesday, but we are reaching an area that has caused some issues recently, so therefore I think the resistance is probably going to be an ongoing issue. We are at the beginning of the earnings season, so there are still a lot of headlines out there that could cause issues. With that being said, I’m looking for signs of exhaustion that I can start fading, but I don’t necessarily think that means that the market is going to fall apart. The 4100 level underneath should offer a significant amount of support, with a 50-Day EMA racing toward it.

On the other hand, if we can break significantly above the 4200 level, then we could go looking toward the 4300 level. It’s obvious that the market is still basing most of its moves not only on earnings season, but the idea that the markets are trying to focus almost exclusively on what the Federal Reserve is going to be doing, as liquidity has driven the entire rally over the last 14 years. In other words, everybody is waiting to see whether or not the Federal Reserve will bail them out.

All things being equal, this is a situation that is reaching the upper reaches of its overall range, and therefore would not be surprising at all to see a pullback. Whether or not we absolutely collapse is a completely different question, and something that I’m not necessarily holding my breath for at this point. Yes, we are seeing a lot of questions asked about the economy, but I think at this point it’s only going to lead into more volatility; therefore, position sizing will be the most important thing that you can pay attention to. With that being the case, the stock market is going to be a very dangerous place in the short-term, but in the longer term it does tend to rise so I think that’s part of what’s going on as well, people are just simply still stuck on the “buy the dip” mentality.

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