S&P 500 Price Forecast – Stock Markets Pulled Back To Find Buyers

US Stock Market Forecast Video for 14.11.23

S&P 500 Technical Analysis

The S&P 500 pulled back just a bit during the trading session on Monday, testing the previous downtrend line for support, and so far, it has found it there. If we can take out the high of the massive candlestick on Friday, then we could see the S&P 500 picked up momentum. After all, Wall Street will find a narrative to sell stocks, and therefore I think it’s probably only a matter of time before we see buyers jump back in.

Underneath, the market has the 50-Day EMA offering support, as we have launched from there on the Friday session. Furthermore, that’s an area where we have seen a lot of support over the last week or so. All things being equal, if we do take of the top of the candlestick from Friday, it shows that we have plenty of momentum jumping into the market. All things being equal, the market is likely to continue to see a lot of noisy behavior, but all things being equal, this is a situation where there is a lot of questions being asked of the trend.

I suspect that we are trying to kick off the “Santa Claus rally” at the end of the year, and of course we continue to see traders suggest that we are going to see the Federal Reserve be forced to loosen monetary policy, and therefore hope burns eternal, and people continue to believe that help is on the way. This is the game we have been playing for months, so it will be interesting to see what the next narrative is to make people happy.

Nonetheless, it’s a market that seems to want to go higher regardless, so therefore there’s no real point in fighting it. However, if we were to turn around and break down below the 50-Day EMA, then we could have a bit more of it deep correction. However, it does not look like there’s any real momentum to the downside and as the war in the Middle East seems to be somewhat contained, that’s the latest narrative that we have avoided seeing the market collapse from. With this, it’s possible that we have the “all clear”, lease for the short term.

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