S&P 500 Forecast – Stocks Waiting for Liquidity

US Stock Market Forecast Video for 05.09.23

S&P 500 Technical Analysis

The S&P 500 index itself was closed during the session on Monday as it was Labor Day and the United States. With this, it makes a certain amount of sense that you can only read so much into the futures market for the day, which is above the 4500 level. If we can break above the shooting star from the Friday session, then is very likely that we could go look into the 4600 level, which of course was near the recent all-time high. On the other hand, if we break down below the 4500 level handily, then we could drop down to the 50-Day EMA, perhaps even the 4400 level underneath that.

Keep in mind that there are a lot of things going on around the world that you will have to pay close attention to, and therefore the S&P 500 is probably susceptible to a lot of noise. That being said, as we are looking at the first week of September, we will have a lot of liquidity rushing back into the market as traders come back from the summer holiday season. Furthermore, there are a lot of questions as to what the Federal Reserve is going to do, and that has a major influence on the S&P 500. After all, the last 14 years or so have been all about liquidity, not necessarily about any fundamentals.

All things being equal, this is a market that is going to be noisy, and what you need to see is some type of impulsive candlestick that you can follow. The market is likely to see a lot of violent moves, but eventually we will see a certain amount of momentum in one direction that we can follow. Over the next couple of days, I would be very cautious, as we try to sort out where the big money is going to flow. All things being equal, we are technically in an uptrend, so one would have to think that’s probably what happens in the short-term, but of course if we were to break down below that 4400 level, that could be a massive side of negativity.

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