S&P 500 Price Forecast – Stock Markets Continue to Build Base

The S&P 500 continues to go back and forth overall, sitting just above the 50 day EMA. That of course is a sign of stability, something that this market desperately needs. If we were to break down below the 50 day EMA, it is likely that we go down towards the 3300 level, followed by the 3200 level where I think there is much more structural report underneath. On the other hand, we break to the upside, and clear the highs of a couple of last week’s candles, then I think we will try to continue the overall uptrend. There are a lot of concerns out there when it comes to volatility and it should be noted that the VIX, although dropping, is still somewhat elevated.

S&P 500 Video 15.09.20

Pay attention to the US dollar, because it can work against the value of the stock market as well, as it shows a certain amount of risk on/risk off attitude. If risk starts to fall, then it is likely that we will see the S&P 500 drop right along with it. On the other hand, if the US dollar starts to show signs of a “risk on” type of movement, then it is likely that the S&P 500 will be one of the first places people that money to work. That being said, I think the only thing you can count on here is a lot of volatility and perhaps choppiness. I will say this from experience though: the longer we stay in an area like this, the more likely we are to see a continuation of the longer-term trend, which of course has been up for quite some time.

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