S&P 500 Price Forecast – Stock Market Continues to Hover Just Below All-time Highs

US Stock Market Forecast Video for 17-01-2024

S&P 500 Technical Analysis

The S&P 500 plunged a bit during the early hours on Tuesday but does seem to be trying to find its footing. With that being the case, I think it’s probably going to continue to be very much the same marketplace, with the 4800 level above being significant resistance while the 4700 level below remains significant support. The market is currently in a consolidation phase, and it does seem like it’s just waiting around to try to sort out what to do next.

Keep in mind the S&P 500 will be moving almost solely based on the idea of loose monetary policy coming out of the United States, which has people buying stocks. If we were to turn around and take out the 4700 level to the downside, the 50 day EMA is sitting right there as well, and it should offer support. Breaking down below that level then opens up the possibility of a move down to the 4500 level. If we break out to the upside and clear the 4800 level on a daily close, then I think you’ve got a real shot of a move to the 4900 level, possibly even 5000. I do think we will get there eventually.

The question at this point in time is whether or not we can pick up the momentum anytime soon and it really doesn’t look like an overly explosive market at the moment. We may be content to simply consolidate sideways in a hundred point range for some time now. Regardless, the one thing that I don’t have any interest in doing is shorting the market, at least not until we clear the 4500 level and even then, I’d have to pay close attention to price action,  fundamentals, and furthermore probably the bond market as well.

At this point, it’s very difficult to imagine that trading in the stock market is going to be easy, unless, of course, you are looking at the consolidation as a guide as to which direction we are going to go.

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