S&P 500 Price Forecast – Stock Markets Trying to Stabilize

The S&P 500 was relatively quiet during the trading session as we are looking to see whether or not the bounce late in the Monday session will hold. The 3200 level is worth paying attention to, and that is an area that I think the market will have a lot of interest in. If we were to break down below 3200, it is likely that the market will continue to go towards the 200 day EMA. Currently, the US dollar continues to strengthen and as long as that is going to be the case it could work against the S&P 500.

S&P 500 Video 23.09.20

Another major problem is that Wall Street is screaming for stimulus, but at the same time the lawmakers in Washington DC are in no mood to compromise on anything. If that is going to be a major issue, that will more than likely weigh upon the stock markets as well. As long as we have dysfunction in DC, that is always going to be something to pay attention to.

From a technical analysis standpoint, one can say that we are treading water, and that in and of itself could be a minor victory. However, if we do not turn around and reassert the bullish pressure after the hammer that was formed during the previous session, that does work against some of the positivity, at least from the technical analysis side. If we can break above the 50 day EMA then the market is likely to go looking towards the 3400 level above. I do believe that it is a very real possibility, but the market has been very skittish for the last couple of weeks, so I am not holding my breath.

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