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S&P 500 Weekly Forecast – Stock Markets Finding Support?

By:
Christopher Lewis
Published: Sep 29, 2023, 13:58 GMT+00:00

The S&P 500 plunged during the bulk of the week but seems to have found a little bit of support.

S&P 500, FX Empire

In this article:

S&P 500 Weekly Forecast Video for 02.10.23

S&P 500 Weekly Technical Analysis

The S&P 500 plunged during the course of the week, reaching a 50-Week EMA before turning around and showing signs of life. By forming the candlestick that we have it suggests that we could get a little bit of a bounce but at this point in time you can also make an argument that rallying from here only slams this market into the rising wedge. Furthermore, there has been a lot of selling as of late, and therefore I think it is going to continue to be a very noisy market regardless.

It is in this environment that I think we’ve got a potential bounce but at the end of the day I don’t know if it’s going to be something that sticks. Quite frankly, a lot of what we are seeing is a technical bounce and the fact that Friday was the end of the month bringing in fresh money.

I think at this point in time we are more likely than not to continue to look at a bit of consolidation, with maybe a slightly upward tilt. Remember, indices are not designed to fall because they are weighted by a handful of strong stocks. It all comes down to what Apple, Nvidia, and a few others are doing that really moves the market.

If we were to break down below the 50-Week EMA, it’s likely that we could drop down to the 4200 level rather quickly. At that point, it opens up the possibility of a move down to the 4000 level. That being said, I don’t think that happens right away, but ultimately the choppiness should continue, and we will more likely than not move due to what’s going on in the bond market more than anything else.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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