S&P Forecast – S&P 500 Continues to React to Inflation

US Stock Market Forecast Video for 14-02-2024

S&P 500 Technical Analysis

The S&P 500 has plunged during early trading on Tuesday as we continue to see a lot of noisy behavior. The CPI numbers in America are coming out hotter than anticipated and this has traders worried about the Federal Reserve being able to cut rates. Now, I think this is probably going to end up being a buying opportunity. We’ll have to wait and see. A lot of this would be algorithmic trading because it happened before the opening of the cash market. So again, might not necessarily mean anything. Underneath the 4950 level is an area that I think should see a lot of support and below there, then we have a hundred points lower, a massive support level near 4850.

Finally, 4800 comes into the picture as a floor in the market, and it also happens to be where the 50-day EMA currently resides. Quite frankly, this is a market that desperately needs some type of pullback, so I think it does make a certain amount of sense that traders get involved, but really at this point, you’re looking for value. Whether or not that value is going to extend from here will be the question, and quite frankly not something that’s easily ascertained. Ultimately, this is like a big, huge game of “chicken”, that the market is playing against itself. Sooner or later, somebody is going to get hurt, and your job is to make sure you aren’t that person by using a prudent stoploss strategy.

The 5,000 level being broken to the upside, of course, is a signal that the market may have gotten a little bit ahead of itself, but it’s also an area that we’ve sliced through twice now. So, I think it has less psychological effect, and therefore the next attempt to get above there probably has a little less to contend with. I have no interest in shorting this market, and I do think that ultimately, we continue to go higher because quite frankly, we’re in a bit of a melt up type of situation.

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