S&P 500 Price Forecast – S&P 500 Continues to Grind Higher

US Stock Market Forecast Video for 08.06.23

S&P 500 Technical Analysis

The S&P 500 has initially pulled back during the trading session on Wednesday, only to turn around and show signs of life. The 4300 level is an area that a lot of people are paying close attention to, and therefore I think it makes sense that we would see the market struggle a bit here, but if we do break out to the upside it’s possible that we could go looking toward the 4500 level. After all, the stock market seems to be ignoring almost everything out there as far as economic headwinds, and a lot of people are banking on the idea of the Federal Reserve coming out to save everyone.

We do have a Federal Reserve meeting next week that could cause a little bit of noise, so keep that in mind. Ultimately, this is a situation where the 4200 level underneath could offer a certain amount of support, as it was previous resistance. The 50-Day EMA is just below the 4200 level. Given enough time, I do think that the buyers return but I also recognize that we are going to have a lot of volatile noise at this point, so it’s very possible that this is a situation where we will continue to see a lot of volatility that causes issues, so be cautious about your position size but clearly it’s almost impossible to short this market as it is overly bullish.

When you look at this chart, you should also keep in mind that there are only a handful of stocks that move the S&P 500, so that is a big problem right now is it’s only something along the lines of 10 stocks that have been pushing the market. Nonetheless, if you are trading just the index that’s really all it matters, that the price is going higher. If we were to break down below the 50-Day EMA, then it would obviously change a lot of the attitude of the markets in general, and could open up a move down to the 200-Day EMA. That being said, I don’t see that happening until the Federal Reserve comes out and says something.

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