S&P 500 Price Forecast – S&P 500 Continues to Find Buyers Every Time we Dip

US Stock Market Forecast Video for 02-02-2024

S&P 500 Technical Analysis

The S&P 500 has tried to rally slightly during the early hours on Thursday as we continue to look at this through the prism of a market that doesn’t really know what it wants to do in the short term. That makes a certain amount of sense considering that we have the non-farm payroll numbers coming out on Friday and that of course is going to be a major driver of interest rate expectations. Granted, Jerome Powell did not sound overly dovish during his press conference on Wednesday, and we have had an outsized reaction to it. I would love to see the S&P 500 drop down to the 4,800 level because quite frankly, that’s an area that was previous resistance, and it should now have a certain amount of market memory attached to it.

Furthermore, we have the 50 day EMA that has substantially crossed the 4,700 level. So I think that is going to be support as well. Longer term, it is more likely than not only a matter of time before we get to 5,000, but this pullback is something that we have needed for some time. And that being the case, you have to look at this through the prism of value. Buying on the dips continues to be what most people will be thinking when it comes to this market as it has been so strong.

The S&P 500 is a market that of course is driven by just a handful of stocks, like most indices in the United States anymore. It’s not really a stock market, it is an ETF, and that tells me everything that I need to know. You just follow the same seven stocks everybody else owns and therefore you will do quite well. If we break down below the 4700 level, that could lead to a much deeper correction, but I don’t think we’re there yet. I think Wall Street is still looking for those interest rate cuts later this year.

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