S&P 500 Weekly Price Forecast – Stock Market Continues to Grind Higher

S&P 500 Weekly Forecast Video for 12.06.23

S&P 500 Weekly Technical Analysis

The S&P 500 initially pulled back during the trading week, only to turn around and see plenty of upward momentum. By breaking higher, it’s obvious that the market is likely to continue to see a huge move to the upside, as the area we are testing now is a major resistance barrier. Now that we are fighting our way through it, it’s likely that the S&P 500 will eventually find its way to the 4600 level over the longer term, perhaps making a little bit of a stop at the 4500 level. However, there is one thing out there that could cause some issues.

The Federal Reserve meeting next week could cause some problems, as Wall Street is yet again trying to pressure the Fed into cutting rates, or at the very least stepping away from its aggressive momentum. We have seen a major fight between bond traders and equity traders, with equity traders simply ignoring what’s going on in the economy. That being said, this is a bit of a FOMO trade, so you have to assume that momentum will continue to cause interest in going long.

If we were to turn around and break down below the 4200 level, that would be a very negative turn of events, perhaps opening up the move down to the 50-Week EMA, sitting just a bit above the 4000 level. Nonetheless, I think this remains a “buy on the dips” type of situation, as we have seen so much in the way of momentum to the upside. Momentum tends to be the one thing that drives the markets more than anything else so you have to pay attention to this.

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