S&P 500 Price Forecast – Stock Markets Quiet on Wednesday

The S&P 500 went back and forth during the trading session on Wednesday, as we continue to see the market go back and forth and try to figure out whether or not we can continue to go higher. The market is sitting just above the 3500 level, and therefore we could see this market going sideways in general. At this point, we break down below the 3500 level, then the market could go down to the 3400 level underneath which was the scene of a major breakout. Ultimately, this is a market that I think does go higher given enough time though, perhaps as a result of the US dollar falling given enough time, or the fact that we have no other alternative at this point.

S&P 500 Video 15.10.20

The 50 day EMA is reaching towards the 3360 handle, perhaps reaching towards the 3400 level as well. Ultimately, this is an opportunity to pick up value in what has been a very strong uptrend. Some people are already starting to talk about a “double top”, but this is so far a bit of a stretch at this point, and furthermore we have the problem that there are a lot of headline risks out there. We are entering earnings season, so that of course has a major influence. Looking at this chart, we had gotten a bit parabolic, so I think a pullback is only good news, not bad. I am looking for some type of supportive candlestick after a drop to get into the market, or for the market to simply kill time and go sideways.

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