S&P 500 Price Forecast – Stock Markets Show Volatility

US Stock Market Forecast Video for 03.08.23

S&P 500 Technical Analysis

The S&P 500 has gapped lower to kick off the trading session on Wednesday in overnight electronic trading, but we have seen a little bit of a recovery as the debt downgrade in the United States seems to be making very little in the way of a lasting impression on the market. At this point, it looks like we continue to consolidate and it does make a certain amount of sense, due to the fact that we are waiting for the jobs number on Friday. Because of this, I think it’s more likely than not that we consolidate, but if we do pull back, there are plenty of areas where I think the buyers schedule back in.

Underneath, the 4500 level is an area that I’d be paying attention to, right along with the 50-Day EMA. All things being equal, I do think that both of those areas should be buying opportunities, and therefore I’m looking for an opportunity to get long on some type of short-term pullback, as it offers value in a market that is so obviously bullish. In fact, it’s not until we break down below 4400 that I am concerned about the S&P 500, despite the fact that it is probably a little bit stretched. Between now and Friday, I don’t expect a whole lot, but I think that the major stocks that people pay the most attention to will continue to be followed quite closely.

If we were to break down below the 4400 level and the 50-Day EMA, then I think we could make a move down to the 200-Day EMA, sitting right around the 4200 region. More likely than not, the S&P 500 will continue to find buyers, and it’s probably worth noting that Citigroup recently has upgraded its target another 100 points, and by the middle of next year expect the S&P 500 to be closer to the 5000 level. Whether or not we get there is irrelevant at this point, but it does speak to the fact that a lot of people are expecting the market to continue going higher over the longer-term, so until something changes, you have to assume that a lot of the film of chasers will still be out there pushing things higher.

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