S&P 500 Forecast August 24, 2015, Technical Analysis

The S&P 500 fell during the course of the session on Friday, crashing into the 2000 level. With that being the case, we see some type of supportive candle, we would be buyers as the market should then bounce towards the 2040 handle. We believe that it’s only a matter of time before the buyers step back in, as it has been oversold. However, the one thing that you can count on will be volatility as the volume is very light this time of year. Ultimately, we have no interest in selling until we go much lower, or better yet get some type of rally that show signs of exhaustion. We recognize 2000 as a large, round, psychologically significant number, and therefore should attract a lot of attention.