S&P 500 Price Forecast – Stock Markets Wait for Fed and ECB

US Stock Market Forecast Video for 04.05.23

S&P 500 Technical Analysis

The S&P 500 had a slightly positive open to the day on Wednesday, but at this point in time it’s all about central banks and of course traders probably won’t want to put too much in the way of money to work right now. After all, we have seen a lot of noisy behavior, and of course a lot of concerns when it comes to inflation and the role of central banks around the world. I think at this point, we need to look at this through the prism of a market that does not really know what to do with itself, and therefore erratic behavior should be considered the norm at this point.

Quite frankly, you would be excused for not even bothering to trade until next week, due to the fact that you have the Federal Reserve meeting followed by the European Central Bank meeting, followed by the jobs number on Friday. I cannot stress enough how dangerous this market is going to be over the next couple of days, but unfortunately a lot of retail traders will be piling into it in order to try to get rich.

That being said, I do think we’ve got a situation where the market will probably have to determine whether or not we are going to make a bigger move over the next couple of days. The 4200 level has been a significant resistance barrier, and if we can get above it that would obviously be a very bullish sign. In that environment, I anticipate that we have a situation where the market could really start to take off. On the other hand, if we break down below the 200-Day EMA and the 4000 level, that would obviously be very negative from a technical analysis standpoint. In that scenario, we could drop significantly, perhaps down to 3800.

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