S&P 500 Price Forecast – S&P 500 Recovers After Initial Overnight Selloff

US Stock Market Forecast Video for 11.07.23

S&P 500 Technical Analysis

The S&P 500 has shown itself to be resilient, after initially pulling back a bit during the trading session on Monday in overnight electronic trading. That being said, we get CPI, PPI, and the Beige Book coming out of the Federal Reserve this week in order to give us a bit of a boost in one direction or the other, so I do expect to see a lot of noisy behavior in general. That being said, I think that the technical set up looks as if we are trying to break above the 4500 level, and it’s probably worth noting that we’ve been bullish for some time.

On some type of pullback, I would anticipate that we would see a lot of buyers coming back into the market and trying to support this market, with perhaps a move toward the 4400 level triggering more buying, and most certainly the 4300 level looks as if it is also well supported, especially with the 50-Day EMA in that general vicinity.

If we were to break above the 4500 level, then it’s very possible that this market would see a flood of new money coming into it, thereby sending it much higher. I do think that the market is trying to do that at the moment, but as things stand right now it appears that the situation at this point suggests that the market participants will continue to see the need to get involved, but keep in mind that the S&P 500 is driven by a handful of stocks, all of which have been extraordinarily outperforming as of late. It’s all of the usual names, Meta, Tesla, etc.

With this, I think we have a situation where traders continue to buy on dips given enough time, but whether or not we get that right away remains to be seen. With that being said, I think we’ve got a situation where you are looking for value, and taking advantage of it until something fundamentally changes in the marketplace, which I don’t think we have quite yet and therefore I would expect more of the same choppy buy on the dip behavior.

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