S&P 500 Weekly Price Forecast – Stock Markets Break Down for the Week

S&P 500 Weekly Forecast Video for 25.09.23

S&P 500 Weekly Technical Analysis

The S&P 500 has broken down through the bottom of a rising wedge during this previous week, as we have seen a lot of negativity. At this point, I think a lot of traders are starting to pay close attention to the fact that the United States, Switzerland, and the United Kingdom all decided not to raise rates this week, which is going to be looked at as a sign of concern.

Underneath, the 50-Week EMA is close to the 4250 region and rising. I think with this negative candlestick, we could very well see a continuation of the negativity, but I don’t necessarily think that this is the beginning of something massive, just that we may need to pull back in the short term. Central banks around the world being a bit cautious, that has a lot of negative connotation for traders out there as it suggests that there are a lot of concerns around the world.

Furthermore, the US dollar started to spike again, and that of course works against the idea of profits around the world for US companies. With a stronger US dollar, US companies have a harder time competing globally. That being said, if the consumer continues to show a lot of uncertainty and weakness, that can only work against the value of the S&P 500, at least until you get the narrative that the Federal Reserve will step in and start to loosen monetary policy yet again. After all, the traders on Wall Street have long looked to the central bank to provide cheap money so that they can gamble. One would have to assume that it is only a matter of time before they start to think that comes back.

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