S&P 500 Price Forecast – S&P 500 Continues to Stagnate, Looking For Momentum

US Stock Market Forecast Video for 07-02-2024

S&P 500 Technical Analysis

The S&P 500 was very quiet during the early hours on Tuesday as it looks like the markets don’t really have anywhere to be. This is not a huge surprise because there’s a serious lack of economic announcements and, of course, at this point in time traders are trying to understand whether or not the market can hang on to these gains. I do think that’s the case, but the occasional pullback comes along.

The 5,000 level above will continue to be an area that I think the market targets, and I do think that 5,000 will cause enough psychological issues that people would look to take profit. If we get there, short-term pullbacks at this point should see plenty of support at 4,900, like we have over the previous three sessions. And then again, at the 4840 level, which is an area that we had pulled back to last week.

Whether or not we break down below there remains to be seen, but we also have the 50 day EMA coming into the picture near the 4,700 level. Ultimately, I think 5,000 will get tested and I do think that it gets broken, but it may not get broken right away. We may be entering a range at the moment with a short-term buy on the pullback type of feel to the market. The S&P 500 of course is basically an ETF at this point to all the usual suspects that will drive what happens with the index, such as Tesla, Amazon, et cetera. So with that being the case, keep in mind, you have to watch the magnificent seven and if they are going up, so will the S&P 500. But again, if they’re falling, so will the S&P 500 as well.

Ultimately though, it looks like we’re in a strong uptrend and I just don’t see how that changes anytime soon, especially as traders are banking on the Federal Reserve cutting interest rates later in 2024.

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