S&P 500 Price Forecast – Stock Market Continues to Rally

US Stock Market Forecast Video for 01.09.23

S&P 500 Technical Analysis

The S&P 500 has continued to see a little bit of bullish pressure after the PCE numbers came out as anticipated. That being said, the 4500 level underneath should offer a certain amount of support, right along with the 50-Day EMA. All things being equal, I think short-term buyers come back into this market on dips but we have the jobs number coming out on the Friday session, which of course will have a major influence. That being said, the S&P 500 could be a bit lackluster during the day regardless of what happens, just due to the fact that most traders will be paying close attention to the holiday over the weekend more than anything else.

Keep in mind, Monday is Labor Day, and it is one of the biggest holidays in the United States, so I think we’ve got a situation where traders will continue to look at this through the prism of a bit of hesitation and more of a “buy on the dip situation.” If we were to break down below the 50-Day EMA, then it’s possible that we could go much lower, perhaps down to the 4300 level. On the upside, we also have the possibility of the 4600 level above as a major resistance barrier, and then if we can break above there, we could test the most recent high.

In general, this is a market that has formed a massive W pattern, which of course is a technical indicator that a lot of people pay close attention to. Nonetheless, I think we’ve got a situation where we just simply hang around and wait for value to appear that we can take advantage of. However, if we were to break down below the bottom of the “double bottom” near the 4300 level, then the bottom could fall out we could go much lower. I don’t expect to see that happening, at least not easily and probably not in the next few days, but it is something to keep in the back of your mind. Ultimately, I think this is a situation where we are going to see a lot of volatility more than anything else but with an upward slant.

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