S&P 500 Price Forecast – Stock Market Hangs Around and 50-Day EMA

US Stock Market Forecast Video for 30.08.23

S&P 500 Technical Analysis

The S&P 500 has done very little during the day on Tuesday, as we are hanging around the 50-Day EMA, an indicator that a lot of people pay close attention to. At this point, the market could continue to rally, perhaps reaching to the 4500 level. Underneath, we have the 4300 level offering massive support, but right now it looks like we are more or less just consolidating, and that does make a lot of sense that we can see a bit of a hesitation as we head toward the jobs figure on Friday. Typically, the market is very quiet as we head toward the Friday of the jobs number, so I think at this point we are going to see more choppy behavior than anything else.

At this point, the market is likely to continue to see a lot of short-term bouncing, and therefore I think it’ll be difficult to see an opportunity here unless we get some type of pullback. There was a little bit of a “double bottom” from the last couple of weeks, and that of course will offer a significant support level. If we were to break down below there, then it’s likely that we could drop down to the 200-Day EMA. Ultimately, if we were to break down below that level, then we could break down significantly, perhaps opening up the possibility of a move down to the 4000 level.

In general, I do think that the S&P 500 eventually goes higher, because quite frankly Wall Street is building some type of narrative at any given moment. It seems like people are choosing to ignore the Federal Reserve, and the fact that the market is going to continue to deal with tight monetary policy. Yes, they may not see a lot of interest rate hikes from here, but at the end of the day, the Federal Reserve is probably going to hang onto tight monetary policy for a while, so that does create a little bit of a drag. However, I do think eventually we break above the 4500 level, and then go looking to the 4600 level after that.

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