S&P 500 Price Forecast – Stock Market Testing Round Figure

US Stock Market Forecast Video for 05-01-2024

S&P 500 Technical Analysis

The S&P 500 did very little during the trading session here on Thursday, as we’re just hanging around the 4,700 level. The 4,700 level is an area that has been important multiple times over the last couple of weeks, so it will be interesting to see how this plays out.

The main question at the moment is whether or not we are just simply going to grind sideways or if we’re going to do something a little bit more drastic and plunge from here. Quite frankly, this market, as well as most stock markets around the world, has gotten too far ahead of itself and I do think that you have a situation where a plunge would probably be welcomed by not only the bearish, but the bullish as well due to the fact that we had gotten up here too quickly. If we break down below 4,700, then 4,600 is very likely as it’s an area of previous resistance, and the 50-day EMA currently is hovering around that area. The Friday session is going to be interesting because it’s the first jobs report of the year out of the United States, and that of course will have a major influence on psychology in the markets.

Whether or not it changes anything long-term remains to be seen, but a little bit of a shock pullback could be coming. I would love that, as it would give me an opportunity to pick up value. The alternative scenario, of course, is that we simply bounce around from here and trade between 4700 and 4800 and work off some of the froth that had built up during the Santa Claus rally at the end of 2023. Because of this, I think there’s a lot of work to do for both the buyers and sellers of this market, and finding some type of equilibrium will probably take quite a bit of effort by both. While Wall Street has celebrated the so-called “cheap money” that is coming down the pipeline, the reality is that the overall economy still has quite a bit of inflation in it.

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