S&P 500 Price Forecast – Stock Market Continues to Look For Higher Levels

US Stock Market Forecast Video for 31-01-2024

S&P 500 Technical Analysis

The S&P 500 has been rather quiet in general but at this point, it does look a bit negative as we have seen the market pull back early in the day. That makes a little bit of sense because market participants will be very concerned about the idea of the FOMC meeting coming out and perhaps not so much the rate decision, but also the statement and the press conference most certainly will be parsed. Therefore, I think you have to look at it through the prism of a market that is possibly going to take a little bit of a break. That being said, I do think it’s probably only a matter of time before buyers would return to the market.

The 4900 level I think offers minor support and at 4800 underneath there is even more support and therefore people will be paying more attention to it.  Underneath that we have 4700 with the 50-day EMA coming into the picture as well but I don’t have any interest in shorting the S&P 500, what I do recognize is that things could be a bit noisy in the short term given enough time. Essentially, I think we’re going to go looking to the 5000 level. That’s almost a foregone conclusion unless, of course, the Fed says there’s no chance of an interest rate hike this year. I don’t think that’s going to be the case.

Now that Federal Reserve governors are not allowed to day trade the markets, they do treat them a little bit differently, but ultimately, they’re still in the pocket of Wall Street looking to pump up assets. Now that being said, the market has gotten a little overextended, so we need to cool off a bit. I think that would be a nice opportunity but whether or not we get it remains to be seen, what is clear to me is that we have to look at the occasional pullback as a potential buying opportunity until we get to the 5,000 level, where I would expect to see a lot of psychological and structural resistance.

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