S&P 500 Price Forecast – S&P 500 recovers slightly

US Stock Market Forecast Video for 17.10.23

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Monday, as it looks like we continue to see a lot of noise in this market. Regardless, Wall Street always has some type of narrative to push markets higher, and I think that’s probably what we are about to see here. With that being said, the market is going to continue to favor the upside despite the fact that we have been drifting lower for quite some time. Keep in mind that the S&P 500 is not an equal weighted index, so therefore you just need to watch the same 7 stocks as per usual to determine where the index will probably go.

It’s probably worth noting that we recently bounced from the 200-Day EMA, and then of course the 50-Day EMA. Ultimately, this is a situation where I think we still pay close attention to bond yields, but we are about to get earnings announcements for Q3, and therefore it does make a certain amount of sense that we would see volatility picking up. If we do drop from here, then the 200-Day EMA would more likely than not be supported and attract a lot of attention.

On the other hand, if we break above last week’s highs, it opens up the possibility of a move toward the 4500 level. Quite frankly, a lot of this will be moving on with the latest narrative about the Fed futures tell us, therefore expect a lot of choppy and noisy nonsense over the next couple of days. The S&P 500 has recently found quite a bit of buying pressure, but there were a couple of rather vicious pullbacks, and I think that’s going to become more and more common over the next several weeks. Regardless, I think that by the time we get through the next couple of weeks, we should have a significant amount of momentum in one direction or the other. If we were to break down below the 50% Fibonacci level, then it’s likely that the market breaks down and gets a little bit of FOMO to the downside.

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