S&P 500 Price Forecast – Stock Markets Continue to Hover

US Stock Market Forecast Video for 31.08.23

S&P 500 Technical Analysis

The S&P 500 has rallied slightly during the trading session on Wednesday as we are hanging around and trying to figure out what happens next. After all, we have seen a lot of noisy behavior, and it looks like we could continue to see a lot of indecision in this area, due to the fact that we had seen such a big move during the previous session. That being said, the market is attracted to the 4500 level at the moment, and if we can continue to see that be the case, it’s like we are simply waiting around for the Non-Farm Payroll number on the Friday session.

Keep in mind that the ADP Non-Farm Payroll announcement came out off by 20,000 jobs, in the previous session we had seen the Consumer Confidence numbers come out lower than anticipated, right along with the JOLTS Jobs Openings figure being 1 million shy of expectation. With that being the case, the market is likely to continue to see a lot of noise, but I also recognize that we are at a point where a little bit of a pullback does make a certain amount of sense. That pullback probably ends up being a buying opportunity, and therefore I think plenty of buyers will be waiting to get involved. Underneath, the double bottom that we formed below the 4400 level offers a “floor in the market”, at least at the moment. Breaking down below that would obviously be very negative. At that point, then I would anticipate that the S&P 500 drops all the way back down to the 200 Day EMA.

On the upside, if we continue to go higher then I think the 4600 level eventually gets targeted, and then perhaps the recent highs. Keep in mind that Wall Street is now looking for bad news to get excited about, as it could bring in more liquidity. The last 13 years have been about liquidity and not necessarily earnings, so therefore I think you need to be very cautious about what’s going on, and therefore it’s possible that we could also see quite a bit of volatility.

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