S&P 500 Weekly Price Forecast – Stock Markets Continue to Pressure the Upside

S&P 500 Weekly Forecast Video for 08.05.23

S&P 500 Weekly Technical Analysis

The stock market continues to find reasons to turn around on every dip, and this past week has been no different. The market got absolutely slammed by Jerome Powell as he stated that the Federal Reserve is nowhere near thinking about cutting rates. However, even though we got a very surprisingly strong jobs number coming out of America, traders still are willing to bet that the Federal Reserve is going to have to turn around and start cutting rates aggressively.

Because of this, the market continues to be a “buy on the dips” scenario, and until this psychology changes, it’s difficult to imagine a scenario where we do anything other than continue to try to break above the 4200 level in the futures market, and therefore release more buying pressure to the upside. At that point, I would anticipate that 4300 would get targeted.

This week featured the Federal Reserve, the European Central Bank meeting, and of course the Non-Farm Payroll numbers. Furthermore, we have had some rather disconcerting action coming out of the banks in America, and we still continue to find buyers every time the market dips. Because of this, it’s one of the situations where the market isn’t going what it “should do.”

With that being the case, you simply wait for a break of the last couple of candlesticks to the upside and recognize that there should be more buyers jumping into the market at that point. It looks as if the 50-Week EMA underneath continues to offer support, and most certainly the 4000 level will. As long as Wall Street believes that the Federal Reserve is going to come to the rescue, it’s going to be difficult see this market breakdown for a bigger move.

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