S&P 500 Weekly Price Forecast – Stock Markets do Very Little Between The Holidays

US Stock Market Forecast Video for 02-01-2024

S&P 500 Weekly Technical Analysis

You can see that we did threaten to break out to an all-time high, but we are struggling on Friday, and I don’t think we’re going to make it. 4,800 of course is an area that a lot of people will pay attention to. It’s a large round number and of course it’s the previous all-time high. Can we break above there? Well, yeah, of course we can, but I also think that we are a little overdone at this point.

So, a short-term pullback is preferable. Simply taking off to the upside would be a bit scary, considering that we’re like 17% from the recent swing low just two months ago. So, with that being said, the 4,700 levels in the area where I think a lot of buyers will return. Furthermore, I think the 4,600 and 4,500 levels both look interesting as well. I would be especially interested in 4700 in the short term, but as a longer term trader, I would love to see 4,500 as it represents a real opportunity to pick up some value. Remember, Wall Street as a general rule likes to buy 10% dips, so I think that comes into the picture. The S&P 500 is driven by just basically seven stocks and therefore you have to keep an eye on all of the usual suspects, and of course, interest rates have their part to play as well.

If interest rates in the United States continue to fall, then the S&P 500 will eventually go higher. I just think that we’re a little stretched at the moment. I look at any sell-off here, not necessarily as an opportunity to shorten the market, but rather as a sign that you should step back and look for clear signs of stability that you can take advantage of. Stocks are more likely than not to go higher for the beginning of 2024.

At least until people start to price in the idea that maybe Federal Reserve cutting isn’t due to a good thing. Inflation could come roaring back too, that’s something to think about. And also, this coming week does not feature the jobs number. That’s actually the second week of January, so keep that in the back of your mind.

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