S&P 500 Weekly Price Forecast – S&P 500 Continues to Show Resiliency

S&P 500 Weekly Forecast Video for 01.05.23

S&P 500 Weekly Technical Analysis

The S&P 500 has found itself drifting lower most of the week, but by the time we got to the end of the week, buyers came back in force, as Wall Street continues to craft one narrative after another to sell stocks. The latest one is that the GDP numbers are weaker than anticipated, and therefore the Federal Reserve “has to” start thinking about cutting interest rates again. Ultimately, a lot of this will be determined on Wednesday, and how the Federal Reserve approaches the overall economy. Quite frankly, I think this is a situation where buyers will come in and pick up the market no matter what happens at this point. However, if we were to break down below the bottom of the candlestick from the trading week and we just finished, that could open up a move down to the 4000 level.

This is a matter of “whistling past the graveyard”, as Wall Street is looking at this as a potential opportunity to get lower interest rates. However, it’s worth noting that the market has been consolidating for a while, and we are at the top of that range. I believe that the 4200 level continues to be important, but it will be interesting to see if that actually gets broken. If it dies, then the 4300 level is almost certainly going to be tested after that.

Either way, expect a lot of volatility, especially around Wednesday as we could get a lot of answers as to where the Federal Reserve is going to be acting. Unfortunately, the real reaction that you need to pay attention to is how the market interprets any statement that Jerome Powell makes.

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