S&P 500 Price Forecast – S&P 500 Attempts to Recover

US Stock Market Forecast Video for 18.08.23

S&P 500 Technical Analysis

The S&P 500 has bounced just a bit during the trading session on Thursday, as it looks like we are trying to recover for the short term. The 50-Day EMA sets above and will offer a certain amount of psychological and structural resistance, and therefore it’s likely that the market will react to that. All things being equal, the market breaking above there opens up the possibility of a move to the 4500 level.

On the other hand, if the market were to break down below the bottom of the candlestick for the trading session on Thursday, then it’s possible that the market could go down to the 4300 level underneath, which might be basically where the 200-Day EMA is going to coincide with it.

All things being equal, this is a market that I think continues to be very choppy and you need to pay close attention to the idea that the earnings season will continue to be very noisy. Furthermore, we have to pay close attention to the idea that options markets are going to go crazy on Friday, as it is a major options expiration.

In general, this is a market that had been very bullish for quite some time, but now traders are starting to worry about the Federal Reserve staying hawkish, and of course interest rates offering a better investment than taking the risk that you would run into using stocks. In general, this is a market that I think continues to see a lot of difficulties, but I do think that the 4300 level underneath would essentially be the “floor of the market.”

If we do recapture the 4500 level, then the market is likely to go much higher, perhaps reaching the highs recently made in the S&P 500 and perhaps then even going as high as 5000, but I think that’s probably pushing it at this point. In general, the markets will continue to be noisy so make sure you keep your position size reasonable, as the volatility can pick up quite drastically and therefore cause unnecessary losses if you are overly exposed.

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