S&P 500 Price Forecast – S&P 500 Continues to Look for Upward Momentum

US Stock Market Forecast Video for 29.08.23

S&P 500 Technical Analysis

The S&P 500 has rallied slightly during the early hours on Monday, as it looks like we are going to continue to try to go to the 50-Day EMA above. If we can break above there, then it’s possible that we could go look into the 4500 level after that. Anything above the 4500 level opens up more of a buy-and-hold type of scenario. Underneath, the 4300 level should continue to offer significant support, due to the fact that the market has formed a little bit of a double bottom in that area.

In general, this is a market that continues to look for an opportunity to go higher, but if we were to break down below the 4300 level, then the market is likely to go down to the 200-Day EMA underneath. In that scenario, we would have a “risk off” market in general, and it will not only be just the S&P 500 that can fall. On the other hand, it does look like we are trying to turn things around after the Jackson Hole Symposium, and therefore it makes a lot of sense that the S&P 500 will rise right along with the rest of the stock market. After all, Wall Street has a long history of ignoring Jerome Powell and what he says, because there’s always a narrative to push docs to the upside.

With the lack of news during the day on Monday, it’s very likely that we drift a little bit higher, but we do have to worry about the jobs number at the end of the week, and as we get closer to Friday, it’s very likely that the stock market and many other financial markets will be very quiet as a result. Between now and then, expect a lot of choppy behavior, which could probably offer short-term back-and-forth trading, and therefore range bound traders may like this market quite a bit. Nonetheless, I do think that sooner or later we get an explosive move outside of the short-term consolidation area, and then we simply follow where that leads us.

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