S&P 500 Price Forecast – Stock Markets Continue to Drift Sideways

US Stock Market Forecast Video for 09-01-2024

S&P 500 Technical Analysis

The S&P 500 has been somewhat hesitant to make a move during the early hours on Monday, as we are hanging around the 4700 level. This is an area that of course is a large round number and therefore I think a lot of people will be paying close attention to it.

It is worth noticing that the Friday session saw a nice recovery late in the day to close right around this area as well. Because of this, I believe that the market is still trying to sort itself out and decide whether or not it is going to continue going higher or if it needs a little bit more of a deep correction to get enough buyers to come back. Obviously, the economic situation in the global economy doesn’t warrant the S&P 500 to continue going higher, so one has to assume that this is all about the perception of multiple interest rate cuts this year coming out of the Federal Reserve. After all, Wall Street loves cheap money to gamble with, and that might be what we’re seeing here.

Any breakdown below the bottom of the Friday candlestick would be welcomed by myself though as I think it gives you an opportunity to buy the S&P 500 closer to the 50-day EMA. The 50-day EMA sits right around the $4,600 level, and I think technically speaking at least, that’s an area that’s going to be important. Underneath there, then you have the $4,500 level. Anything below there would be a deep correction, which quite frankly isn’t completely out of the cards at this moment, but right now the market looks as if it’s still in that buy-on-the-dip mentality.

Above we have the 4800 level offering resistance, which was a significant all-time high, essentially, and therefore it’s not a huge surprise to see that we have pulled back from there. Anything above there would have more FOMO trading coming into the picture. This is something that we have seen multiple times during the previous year, so it’s very possible that it could happen.

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