S&P 500 Price Forecast – Stock Market Continues to Rally

US Stock Market Forecast Video for 25-01-2024

S&P 500 Technical Analysis

The S&P 500 rallied again early during the trading session on Wednesday and as we continue to see money running into the stock market with lower interest rates. Furthermore, there are a lot of people out there really starting to ramp up their positions due to the idea that perhaps the Federal Reserve is going to come and save everyone. They are looking more and more like a central bank that will continue to do everything it can to liquefy the markets. Furthermore, there are some people out there that believe that the Federal Reserve will do what it can to keep Biden in office. I understand that the Federal Reserve is supposed to not be political, but they are.

So, with all of that being said, it does make a certain amount of sense that stocks continue to go higher. Furthermore, you have to keep in mind that the S&P 500 is not 500 stocks, it’s about seven. The rest are just byproducts to fill in the blank, as it were. So much money has gone into just a handful of stocks due to passive investing so now you only have to watch some normal stocks like Microsoft, Tesla, Amazon, those types, to get an idea as to what stock indices will do in general.

On a pullback, I would be a buyer. I think the 4,800 level was an excellent area for support, but right now it looks like we’re probably going to try to challenge 4,900, even break above it. If and when we do, then we go looking to the 5,000 level, which of course is a large round number that will attract a lot of attention. Keep in mind that we have had a massive melt up and we are now 20% from the swing low late last year that kicked off this rally. How much further this can go? I don’t know, but it’s clear that we are in a runaway market right now. So, selling the S&P 500 is absolutely impossible. I think your floor has moved up to 4,700 with the 50-day EMA approaching that region.

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