S&P 500 Price Forecast – Stock Markets Continue to Look Cautious

US Stock Market Forecast Video for 08.09.23

S&P 500 Technical Analysis

The S&P 500 fell overnight in futures trading as it looks like we continue to see a lot of “risk off behavior” out there. All things being equal, I think we’ve got a situation where the market could very well drop down toward the 4400 level, perhaps even lower than there. Ultimately, the market is likely to see a lot of volatility, and therefore I think we may have to keep an eye on that “double bottom” that we bounced from recently, and now the question is whether or not the market price fells down below there. If it does, that would obviously be very negative and could send this market much lower.

The market slicing through the 50-Day EMA is something that will attract a certain amount of attention, and the fact that the 4500 level has offered resistance also comes into the picture well. If we were to break down below the bottom of the double bottom, the market could go down to the 200-Day EMA underneath, which of course is a major technical indicator that a lot of people will pay close attention to. Anything under there would send this market much lower, sending the market to at least the 4000 level.

Ultimately, I do think that it’s worth noting that the market participants have come back from the summer break, and therefore we will see a lot more volume in the markets. Whether or not this is a good thing remains to be seen, but so far it’s not looking too kind to pricing. Over the longer term, I think we probably have a situation where the market will have to sort itself out and determine where it wants to go, and although it has been very ugly over the last couple of days, we are far from being in a significant downtrend. With that being the case, I like the idea of waiting to see if that double bottom gets breached, or if there is support underneath that will continue to keep the market afloat. The next couple of days, or for that matter, the next couple of weeks could be crucial.

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