S&P 500 Forecast – Stock Markets Attempt to Recover on Thursday

US Stock Market Forecast Video for 10.03.23

S&P 500 Technical Analysis

The S&P 500 market initially pulled back during the trading session on Thursday, as futures traders sold off the contract. However, as the Americans have come back to work, they started buying stocks, therefore the futures market and the cash index both rallied. At this point, the 50-Day EMA above offered a little bit of resistance, just as the 200-Day EMA is. They are both flat, so that suggests that we are essentially consolidating and trying to figure out where to go next.

The 4100 level above should be significant resistance, and I think it will attract a lot of attention. If we were to break above that level, then we could go looking to the 4200 level, but that will take a significant amount of momentum to make that happen. Keep in mind that the market is going to continue to be very noisy, as we are trying to figure out what’s going to happen with interest rates, which seems to be the only game in town. Yes, we have gone through another earnings season, but most people haven’t really paid too much attention to it. It’s all about Jerome Powell and whether or not he is going to continue to raise rates. He stated this past Tuesday that he was in fact looking to do so aggressively.

Underneath, the 3900 level could be a significant support level, and then if we were to break down below there, it could be the 3800 level that a lot of people will be paying attention to as it was the scene of a significant swing low. Anything below there more likely than not opens up quite a bit of a significant drop at this point in time. Either way, the market is likely to continue to see a lot of back-and-forth noise in this overall range, so therefore I think we have a lot going on that could come into the picture and throw this market back and forth. At this point, you are probably better off trading back and forth in some type of short-term range bound trading system of your preference. Bigger moves are probably not likely to happen in the short term.

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