S&P 500 Price Forecast – Stock Markets Continue to Look For Momentum

US Stock Market Forecast Video for 26-01-2024

S&P 500 Technical Analysis

The S&P 500 did very little during the trading session on Thursday in the early hours, as it looks like we are running out of momentum. That does make a certain amount of sense, considering that the market shot straight up in the air over the last five or six trading sessions, but quite frankly, it goes back to Halloween of last year when the market just took off based on the idea of the Federal Reserve cutting rates. It now appears like traders are perhaps trying to make some profit and of course may have run out of momentum and excitement.

If we pull back from here, the 4800 level is an area that a lot of people will be paying close attention to as it was previous resistance, so now it should have a certain amount of market memory and offer support. Underneath there, we have the 4700, which I think is a hard floor in the market, also featuring the 50-day EMA but if we were to break down below there, then obviously we would have to rethink the entire thing. I don’t see that happening anytime soon, so therefore I think it is a situation where the market would have to see a substantial change in attitude to have that happen.

But right now, this looks like a market that’s running out of momentum. It’s still very bullish though, and I would not get short of the market, but I also recognize that this is a scenario where market participants continue to look at this through the prism of whether or not there is going to be loose monetary policy. And it does increasingly look like that’s going to be the case down the road. The question of course is, you know, how far ahead are we pulling this loose monetary policy? Furthermore, we have earnings too so we’ll see how that turns out. So far, it’s been a bit of a mixed bag, but really at this point in time, I think the S&P 500, like most other stock indices around the world, is not necessarily something you can be selling at this point.

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