S&P 500 Forecast: Looks Bullish, For Now
Date
3/16/2023 7:12:07 AM
(MENAFN- Daily Forex) The s&p 500 rallied significantly during Tuesday's trading session, reaching the 3950 level.
This area has been crucial multiple times, and it's only a matter of time before sellers emerge. The market's sudden exuberance stems from the belief that the federal Reserve will save everyone, as it has done in the last 14 years. However, inflation is still raging, and it will continue to cause problems.
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Even if the market rallies from here, the 4000 level will be a target. This will cause a lot of noise and headline nonsense as traders try to guess the Federal Reserve's next move. However, it's unclear whether the Federal Reserve knows what it's going to do next as its incompetence has become obvious. There is a certain amount of resistance and a ceiling in the market at the 4000 level. Any signs of exhaustion in that area could lead to shorting opportunities. However, be prepared to bail out of positions as soon as possible if there are signs of trouble.Be Cautious
If the market breaks down below the 3800 level, it could lead to a move down to the 3600 level. The market is expected to remain volatile, and there is a lot of uncertainty, which could lead to opportunities to lose money if traders aren't careful. This market is dangerous to say the least and will more likely than not remain so.
In conclusion, the S&P 500 has rallied significantly during Tuesday's trading session, but it's only a matter of time before sellers emerge. The belief that the federal reserve will save everyone has caused a sudden exuberance in the market, but inflation is still raging, causing uncertainty. Even if the market rallies from here, the 4000 level will be a target, and traders should be prepared for a lot of noise and headline nonsense. If the market breaks down below the 3800 level, it could lead to a move down to the 3600 level. Traders should expect volatility and exercise caution to avoid losing money in this uncertain market. Position sizing is paramount now, as the market seems to be running on rumors and assumptions at this point. This is the type of environment that we saw before several of the big blow-ups in the past, as volatility isn't the friend of the bulls.
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