S&P 500 Price Forecast – Stock Markets Continue to Fight for Positivity

The S&P 500 went back and forth during the trading session early on Thursday, as we dipped below the 3400 level, only to turn around and show signs of strength again. Ultimately, this is a market that should continue to see a lot of choppiness, and perhaps volatility going forward as traders trying to figure out whether or not the major selloff from just a few sessions ago is something to be concerned about, or if the 50 day EMA is going to hold instead? I think at this point it is still pretty much anybody’s guess, although the last couple of trading sessions have shown some resiliency that cannot be ignored.

S&P 500 Video 11.09.20

Pay attention to the US dollar, because if it starts to strengthen again that could be the first sign that the S&P 500 might be in a bit of trouble. There are a lot of crosswinds right now, and it should be noted that although there is a lot of quantitative easing out there, the fact is that the underlying economy for quite a few places around the world right now it just does not look that good. If that is going to be the case, then it is very likely that the stock market will reflect that sooner or later. I think a lot of reality has just been slapped right back into the face of the market, so it will be interesting to see how behavior comes into play over the next couple of sessions. If we can break above the 3450 level, then I would be much more confident of a move to the upside. If we break down below the 50 day EMA underneath, the market is likely to go looking towards 3200.

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