S&P 500 Forecast – S&P 500 Continues to See Downward Pressure

US Stock Market Forecast Video for 27.10.23

S&P 500 Technical Analysis

The S&P 500 fell again during the early hours on Thursday, as we continue to see a lot of negativity out there. The market breaking down below the 4200 level is of course a very negative turn of events, and now it looks like we are going to go down to the 61.8% Fibonacci level. The 61.8% Fibonacci retracement level of course is a very significant technical indicator that a lot of people pay close attention to.

If we turn around and break to the upside, then it’s possible that the market could go looking to the 200-Day EMA, which is an area that looks like we are going to see a little bit of resistance. Ultimately, I think it’s going to take quite a bit of momentum to break above there, especially as we are in the midst of earnings season, which has been better than anticipated, but the market is not reacting in a very positive way to these numbers, showing that perhaps traders are focusing more on the geopolitical and macroeconomic picture.

All things being equal, this is a market that I think continues to see a lot of volatility, and although we are falling at the moment, there will be the occasional rally. Those rallies will more likely than not jump into resistance that people are more than willing to start selling again. The market is likely to continue to see a lot of volatility, but I do think that the downside is going to continue to attract a lot of attention due to the fact that we have to worry about whether or not the United States is going to head into a massive recession. All things being equal, this is a market that will continue to be very volatile, and volatility very rarely leads to bullish moves.

That being said, we are at the bottom of the overall downward channel, so the short term rally is more likely than not. In general, this is a situation where you are looking for opportunities to fade this market. If we continue to go lower from here, then the 4000 level could very well be targeted over the longer term.

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