S&P 500 Price Forecast – Stock Markets Continue to Go Back and Forth

US Stock Market Forecast Video for 09.05.23

S&P 500 Technical Analysis

The S&P 500 has gone back and forth in quiet trading on Monday, as the market has recently digested quite a significant amount of economic announcements. That being said, the market is likely to continue to look at the 4200 level as a significant resistance barrier, while the 4000 level underneath could be a significant support level. The 50-Day EMA hangs around the bottom of the candlestick from Friday, and of course, we have the 200-Day EMA sitting near the 4000 level as well.

Ultimately, the S&P 500 will move right along with risk appetite and of course, whether or not traders believe that the Federal Reserve is eventually going to bail everybody out. That is the overall consensus of the Wall Street firms. However, this is a market that I think continues to see a lot of choppy behavior, and of course range bound behavior as we try to figure things out.

That being said, signs of exhaustion near the 4200 level could be an opportunity to get out of the market to continue playing the same range. However, if we do break above the 4200 level, then it’s likely that the market could go all the way up to the 4300 level, where the next major resistance barrier is. On the other hand, if we were to turn around and break down below the 4000 level, the bottom could fall out of this market, opening up the possibility of a move down to the 3800 level.

All things being equal, this is a market that will remain very choppy through the summer, as there are a lot of concerns about central banks tightening around the world, a global slowing, and of course the overall question as to whether or not the Federal Reserve is actually going to stick to its guns. As long as that’s going to be the case, and the fact that we are in the midst of earnings reports, there is so much noise out there that you need to play this more or less from a range bound type of market than anything else. Hanging on the trades will be difficult at the moment.

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