S&P 500 Price Forecast – Stock Markets Plunge

US Stock Market Forecast Video for 22.09.23

S&P 500 Technical Analysis

The S&P 500 plunged early during the trading session on Thursday as it looks like there are a lot of concerns around the world when it comes to global growth. This makes quite a bit of sense to be fair because not only did the Federal Reserve stand pat with its interest rate hikes, the Swiss National Bank and the Bank of England both did the same. The last 2 were a bit of a surprise, and traders are more likely than not out there worried about whether or not things are actually deteriorating.

At this point, it’s probably a “sell first, ask questions later” type of scenario. Market participants do tend to get very nervous in these times, and of course we have the algorithmic and computerized trading that is such a huge part of the markets now that will simply dump everything it has to get out of the position. In other words, we could see a bit of momentum pick up after what we have seen during the last couple of days.

Rallies at this point in time will have to pay close attention to the 50-Day EMA, which is currently hanging about the 4450 region, and therefore it could cause a little bit of trouble in and of itself. At this point, I think it’s probably best to look at this through the prism of fading short-term rallies, but I also recognize that markets are built to go higher over the longer term, as it is only a handful of stocks that tend the move the entirety of the index.

Ultimately, this is a situation where the markets will continue to show a lot of volatility, and therefore you have to look at it through the prism of whether or not we can find support near the 4350 level, because if we cannot, then it would lead to a much bigger plunge. As things stand right now, it is still just a significant pullback, but momentum is starting to build up a bit. Pay attention to the usual suspects such as Apple, Google, etc.

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