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

US Stock Market Forecast Video for 15.12.23

S&P 500 Technical Analysis

The S&P 500 has rallied just a bit during the trading session on Thursday, as it looks like loose Federal Reserve monetary policy is going to continue to be a major issue, and therefore I think we’ve got a situation where the stock market is going to continue to do the “Santa Claus rally” that momentum is going to continue to demand. Short-term pullbacks will be bought into, but that’s something that we have seen for quite some time. The market is overextended, but then again, the market has been overextended for quite some time.

Underneath, I see the 4580 level as an area of significant support that extends down to the 4550 level. The 50-Day EMA is an indicator that a lot of people pay close attention to, and therefore it will offer a certain amount of support. Ultimately, this is a market that you cannot be a seller of, because quite frankly it is far too bullish. We will probably continue to rip higher for the next several days, but eventually there will be some profit-taking that will be quite vicious. After all, sooner or later we are going to have to see money managers report to their customers some type of profitability for the year. Ultimately, this is a market that continues to see a lot of volatility to the upside, and I think at this point in time we have reached the “FOMO” part of the rally.

As far as a target is concerned, it’s difficult to imagine where we stopped, but at this point in time I think the market is definitely getting dangerous to hang onto for any significant amount of time. We could go to the 5000 level, which sounds ridiculous but the way we have moved to the upside over the last couple of weeks certainly makes that a real possibility. I would anticipate a lot of profit-taking if we got anywhere near that level. That being said, you can clearly not be a seller of this market, and therefore you can only do one thing at this point in time if you are looking to get into the market. That being said, you cannot hang on to the move the way things are right now.

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