S&P 500 Price Forecast – S&P 500 Quiet in Overnight Electronic Trading

US Stock Market Forecast Video for 16-01-2024

S&P 500 Technical Analysis

The S&P 500 has done essentially nothing during the day on Monday, which makes sense, as it’s Martin Luther King Jr. Day in the United States, but the CFD markets were open, and the futures markets were open for a few hours. With that being said, I think you continue to see a market that is trying to break out to the upside, and ultimately, I think you have to look at the 4800 level, which is crucial. The 4800 level has been pretty significant resistance multiple times, and therefore, I think it will continue to be a buy on the dip scenario.

Now, underneath, the 4700 level will continue to be a significant support level as well but breaking down below there would, of course, be rather negative and could open up the market to test the 50-day EMA. Keep in mind that all of this is about interest rates in the United States and what the 10-year yield is doing. If the 10-year yield starts to rise, that could be negative for it.

On the other hand, the S&P 500 would rally significantly if those rates continued to drop. Basically, most traders on Wall Street don’t care about the economy anymore, it’s going to be about what the Federal Reserve is going to do. In fact, most believe that they are going to cut rates multiple times this coming year, so that will be good for stocks, at least for a while. Someday, economic reality will matter, but that is only under the rarest of circumstances since the great financial crisis. With this, it remains a buy on the dip market.

All things being equal, Wall Street is hell-bent on pushing the S&P 500 higher and its only about 7 stocks that move the whole thing. Because of this, you are paying attention to all the same markets as usual, and waiting to see if they rally. Tesla, Microsoft, Nvidia, Amazon, etc. are the entire stock market at this point, so it’s only a handful of companies that make up a huge portion of the momentum for this market.

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