S&P 500 Forecast – Stock Markets Continue to Look for a Floor

US Stock Market Forecast Video for 27.09.23

S&P 500 Technical Analysis

The S&P 500 initially pulled back just a bit during the trading session on Tuesday, but then bounced a bit to show signs of life. If we break down below the bottom of the last couple of candlesticks, then the S&P 500 could then go looking toward the 200-Day EMA. On the other hand, if we were to turn around a break above the last couple of candlesticks, and perhaps the 4400 level in the futures market opens up the possibility of a move to the 4500 level. It’s probably worth noting that the 20-Day EMA has broken below the 50-Day EMA, which of course is a short-term negative sign.

The S&P 500 is driven by just a handful of stocks anymore, so you cannot read too much into the index without looking at stocks such as Apple, Microsoft, Amazon, and of course, Nvidia which has been the darling of Wall Street until recently. By paying attention to those stocks, you can get an idea as to where the index itself will go.

I do believe that we may be looking at a short-term bounce sooner or later, but signs of exhaustion will probably be a nice selling opportunity. I think we will continue to see a lot of volatility, and therefore you need to be cautious about the overall position sizing and of course exposure that you have to the market. I have no interest whatsoever in trying to get too cute at this point, and I do recognize that we are in a very precarious situation. That being said, Wall Street seems to always have some type of narrative it can pull out of the hat in order to make things bullish again, but I’m not sure what that’s going to be. Position sizing will be crucial, but it does look like we are in an area where we will continue to consolidate, and perhaps try to sort out where we go for the next leg be it higher or lower. The market will continue to see a lot of uncertainty, and you should trade the market as such.

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