S&P 500 Price Forecast – S&P 500 Continues to Grind Away to The Upside

US Stock Market Forecast Video for 20.12.23

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Tuesday, as it looks like we are going to continue to see upward pressure overall. After all, a lot of traders out there are participating in the so-called “Santa Claus Rally”, which of course happens when traders try to change performance at the end of the year, and at this point in time it’s obvious that the market is going through that at the moment. That being said, the market is likely to continue to see a little bit of performance chasing between now and the end of the year.

The market has stretched far too much to the upside, and as we are approaching the 4750 level, one has to wonder how much further we can go? Sooner or later, there will be profit taking and it will be vicious. It will probably be done suddenly and in a very illiquid environment. Remember, Monday is Christmas Day, which of course most people are focusing on now. The only people in the market currently are those who are trying to scale out of positions, or worse yet, trying to come up with some type of performance. Most money managers, well over 60%, have underperformed the index this year, which of course is not a good look. They have to follow the index in order to show their clients that they are at least making them some money.

Underneath, I think that the 4500 level is a hard floor in the market, as the 50-Day EMA hangs around that area. I don’t necessarily think we will get there easily or soon, but I would love to see a pullback toward that area in order to start to think about plunging into this market. I have no interest in chasing the market at this point, and as a general rule have stayed out of the market for the last 10 days or so. In general, this is a situation where the market will continue to see a lot of volatility but given enough time I think we’ve got a situation where buyers will return after the new year as well.

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