S&P 500 Price Forecast – S&P 500 Continues to See Buyers Regardless of Gravity

US Stock Market Forecast Video for 22-01-2024

S&P 500 Technical Analysis

The S&P 500 rallied again during the trading session on Friday as it looks like we are trying to break above the 4800 level. The 4800 level is a large round number that has been like a ceiling for the market. And I do think that given enough time we could break out to the upside. Short-term pullbacks continue to be buying opportunities, and therefore, it looks like we could continue to see plenty of support, especially down at the 4700 level.

The 4700 level is a large round number as well, and an area where we have seen quite a bit of buying pressure over the last two months or so. If we were to break down below there, then you have the 50 day EMA coming into the picture offering support as well.

In general, the stock markets continue to rally based on the idea that the Federal Reserve is going to do something with interest rates this year to bring them down and loosen monetary policy. We are essentially in a situation where bad news is good news due to the fact that that gives the Federal Reserve more cover to start cutting. It’s the same playbook we’ve seen from the Great Financial Crisis Bank in 2008.

Wall Street is standing there with its hands out, looking for some type of handout. And unfortunately, that’s just the way the game is played. So, if we get plenty of liquidity, then that will send the markets higher. If the Federal Reserve sounds tight, then it’ll send it lower. At the same time, you can make an argument that we really should have pulled back further.

But as things are right now, that only ends up being a buying opportunity as well. Quite frankly, you just can’t short the stock market. It’s ripping in your face and may very well continue to do so for the foreseeable future. The last couple of weeks have been about building up momentum to continue going higher. Given enough time, this market should continue to find buyers regardless of what happens, as New York almost always has a “buy the dips” mentality.

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