S&P Forecast – S&P 500 Recovers in The Early Hours on Wednesday

US Stock Market Forecast Video for 15-02-2024

S&P 500 Technical Analysis

The S&P 500 rallied slightly during the early hours on Wednesday as it looks like we are trying to hang on to the overall uptrend. After all, the Tuesday session featured a CPI number that was quite shocking and of course, sent risk assets dropping. This of course is a situation where the markets continue to run in lockstep with what expectations coming out of the Federal Reserve will do over the longer term.

That being said, the market is likely to continue to see a lot of upward momentum due to the fact that a lot of passive investing goes to the same stocks. And of course, those same stocks are a huge driver of this index as it is not an equal weighted index. Ultimately, this is a situation where you have to look at it through the prism of finding dips as buying opportunities, and the 4950 level also offers quite a bit of support. If we were to break down below there, the 4850 level is your next support level followed by the 50 day EMA and the crucial 4800 level.

That’s essentially where I think the bottom of the trend is at the moment. We did break above the 5000 level a couple of days ago, and I think that’s probably the goal for bulls now. In general, this is a market that I think is going to continue to be driven by the idea that the Federal Reserve will eventually loosen monetary policy during the year.

And as long as that’s the case, it does make a certain amount of sense that stocks would go higher as Wall Street has been trained to look for cheap money as a reason to buy stocks. That being said, this is a market that desperately needs some type of Tuesday was rather rough. I don’t know if it was enough to get a lot of new money flowing into the market, but momentum traders certainly love the S&P 500 right now.

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