S&P 500 Price Forecast – S&P 500 Continues to Fly

US Stock Market Forecast Video for 19-02-2024

S&P 500 Technical Analysis

The S&P 500 initially did try to rally overnight in the electronic session as the uptrend continues, but we have seen PPI numbers come out in the United States hotter than anticipated. So it has caused a bit of a ripple and it looks like the markets are trying to come to grips with it. That being said, this is a market that is very much in an uptrend, and I’m not looking at this chart as anything different and therefore, regardless of what the market may do in the next couple of days, this is a market that should be bought and not sold. The 5,000 level underneath will be a certain amount of support right along with the 4,950 level. The 50 day EMA is all the way down at the 4,800 level.

So really, it’s not until you get to that area that you can even have the conversation about it being a potential trend change. And even then, I think you would be a little early. This is a market that, yes, is miles above where it should be, but that doesn’t matter. It’s all about momentum, and it’s all about a handful of stocks. As long as those stocks continue to bring in money, nobody is really going to care, and it’s going to push the index higher. After all, the index isn’t made to fall. That’s something most retail traders don’t get: It’s not equal weighted.

So therefore, as long as the magnificent, used to be seven, now it’s magnificent six, I guess, because Tesla has slipped a bit, continue to rally, that puts something like 35% of the index positive just by itself. So I’m looking to buy dips. Hopefully we get a little bit of a pullback here. We have President’s Day on Monday, so that’s something to keep out as well. But, you know, maybe just step back for a day or two and pick up any value that shows itself. It’s also worth noting there’s about $2 trillion worth of options expiring on Friday as well. So that could make the price action a little odd.

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