S&P 500 Price Forecast – Stock Markets Rally Into The Holiday

US Stock Market Forecast Video for December 26, 2023

S&P 500 Technical Analysis

The S&P 500 rallied slightly during the trading session on Friday as it looks like we are heading into the holiday season. All things being equal, this is a situation where the market is likely to continue to see upward trajectory over the longer-term, but in the meantime it’s also worth noting that the next week or so is going to be very thin as far as trading is concerned, and therefore you have to understand that the markets do tend to be random during that time.

Ultimately, I like the idea of buying dips, but we are so overstretched at this point I think that you desperately need to see some type of pullback. That being said, if the market were to break down from here, then we could go down to the 4600 level. The 4600 level is an area that a lot of people will be paying close attention to, and then after that we have the $4500 level which I think is your “floor the market”, assuming that we even get that pullback.

At the very least, we need to see this market go sideways to work off some of the excess froth. After all, markets have gone pretty far in a very short amount of time, so therefore you need to be cautious about getting overly aggressive at this point. After all, we have gained 17% since Halloween, meaning that the market is overdone. Ultimately, this is a situation where the market going higher from here could be a possibility, but sooner or later we need to see some type of massive correction. After all, sooner or later somebody needs to take some profit.

Furthermore, we need to pay close attention to the idea that the economy may be slowing down, and sooner or later people are going to be worried about earnings. In the meantime, though, it seems like everybody is worried about the idea of the Federal Reserve loosening monetary policy offering a reason to buy stocks yet again. All things being equal, this is a situation where gravity eventually has to come into the picture though, so therefore keep that in the back of your mind.

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