S&P 500 Price Forecast – Stock Markets Quiet During Wednesday Session

US Stock Market Forecast Video for 09.03.23

S&P 500 Technical Analysis

The S&P 500 initially sold off in the futures market overnight but did see a little bit of buying pressure later in the day. That being said, the market looks as if it is trying to figure out what to do next, after the massive selloff that we had seen during Tuesday’s session. Keep in mind that Jerome Powell reiterated his desire to raise interest rates, but also opened up the possibility of even quicker interest rate hikes than originally thought. This caused a bit of chaos on Tuesday, and on Wednesday it just seems like we are trying to take a bit of a breather after that massive selling panic.

If we break down below the lows of the day, we could make a move toward the 3900 level, which then opens up the possibility of a drop down to the 3800 level, much more significant support area for the longer-term trend. Any rally at this point in time is probably short-lived, although probably expected. After all, Wall Street has made a meal of any selloff lately, as an excuse to pick up “value.” It seems as if no matter what the Federal Reserve does, it cannot convince Wall Street that it’s going to continue raising rates. As long as we keep playing this game, it’s possible that we have more of a “buy the dip” mentality out there.

Nonetheless, if we do take out the 3900 level, probably brings in quite a bit of downward momentum. On the other hand, if we take out the 4100 level, we could have a run toward the 4200 level. That obviously would be bullish, but I think 4200 is going to be very difficult to take out to the upside so I believe that’s about as high as we can get any time soon. Expect a lot of choppy volatility, but at the end of the day I think this is a market that is trying to carve out a larger consolidation range. Keep in mind that there is a lot of concern out there when it comes to global growth and of course whether or not interest rates will continue to climb quite drastically.

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