S&P 500 Price Forecast – Stocks Continue to Lose Ground

The stock markets continue to be a sad place these days, as the pressure continues. The market has seen a lot of selling over the last week or so, and this should continue to be the main feature that people pay attention to. After all, the markets are a measure of how much the Federal Reserve is willing to support them, as we have forgotten about the economy, company earnings, and the like. At this point, it is all about liquidity measures, and what is happening as far as that is concerned. That does not look likely to change anytime soon so I do think that it is only a matter of time before we take off again.

S&P 500 Video 14.09.20

With that being the case, I am relatively bullish, but I also recognize that we should probably take a bit of a breather in the short term. After all, the market has seen quite a bit of noisy volatility and has gone straight up in the air for several months. With that being the case, it does make sense that we would struggle overall to continue the move to the upside. With this being the case, I think that we are looking at a scenario where we could easily drop to the 3200 level.

Furthermore, we could even drop down to the 200 day EMA, which is closer to the 3100 level. With this, I think that what we are looking at is a scenario where the sellers may drive this back down as it has been a bit frothy as of late, but it does not threaten the overall uptrend anytime soon. Simply being patient and waiting for a buying opportunity is probably the safest way to play this market.

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