S&P 500 Price Forecast – S&P 500 Continues to Grind Higher

US Stock Market Forecast Video for 16-02-2024

S&P 500 Technical Analysis

The S&P 500 on Thursday has rallied slightly as we continue to see inflows just above the 5000 level. It’s worth noting that the 5000 level is an area that has a certain amount of psychology attached to it, but we’ve sliced through it a couple of times now, so really, sooner or later the efficacy disappears. Whether or not that happens soon remains to be seen. This is a major level for a lot of secondary options type of trading also, so keep that in mind as it could cause noise.

That being said, the market will continue to see the good news is bad news and bad news is good news type of attitude. Retail sales came in cooler than anticipated and this suggests that perhaps stocks may rally due to the fact that Wall Street cheers bad economic news because it means the Federal Reserve may have to loosen.

After all, that CPI number that was so strong on Tuesday now looks like it might be in the rearview mirror. The traders at Wall Street will continue to look for reasons to buy stocks and at this point in time, the retail sales number might be the latest reasoning. The $4950 level underneath is rather strong support right along with the 4850 level. And of course, we have the 50 day EMA just breaking above the 4800 level. I think at 4800, if we were to break down below there, you’d have to question the trend, but we’re nowhere near doing that. I think it’s more or less going to be a grind with a slightly upper tilt at this point, as it has been for some time. Really, there’s nothing out there to dissuade traders from gambling, and that’s exactly what they’ve been doing.

Sooner or later, the Federal Reserve will cut rates and that will help stocks initially, but if they have to cut them rapidly due to a recession, that could turn things around. Either way, it looks like this is an upward trajectory just waiting to continue.

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