S&P 500 Price Forecast – S&P 500 Somewhat Quiet to Kick Off The Week

US Stock Market Forecast Video for 06-02-2024

S&P 500 Technical Analysis

S&P 500 has been very quiet during the early hours on Monday but that is probably not a huge surprise because, quite frankly, there isn’t much out there to move the markets during the day since we have a severe lack of economic announcements. Therefore, I think a lot of traders are just simply going to look at this through the prism of whether or not momentum is going to continue to work in the market’s favor. It probably does, given enough time and of course, you will have to pay attention to those interest rates in America because they will make a big difference as well. Quite frankly, I think this is a scenario where market participants eventually find value on dips, especially down to the 4,800 level. The 50-day EMA is all the way down at 4,700 right now.

I think as we are only 50 points away from the 5,000 level, a lot of traders will be trying to push the market to that area. I imagine there are probably a million people up there, wittingly getting into the options market, trying to push it back down. So I think we probably have a scenario here where once we get the market into that region, it may struggle, but may get a significant background. So with that being said, the market is going to continue to see this as a situation where the buy on the dip attitude continues to drive the market higher just based on FOMO more than anything else. The 5,000 barrier brings in a significant amount of resistance, but if we can break above there, then we really could see a lot of FOMO coming into the market as well.

All of this being said, remember that it is just a handful of stocks that move the market overall, and therefore you will have to keep an eye on the “magnificent seven” for what they are doing. If the top seven stocks are gaining, by extension the S&P 500 almost has to. This is what passive investing has done to the index afterall.

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