S&P 500 Price Forecast – S&P 500 Noisy After PPI Numbers

US Stock Market Forecast Video for 15-01-2024

S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the course of the trading session on Friday, with the 4800 level offering quite a bit of resistance. At this point in time, it looks like it is going to offer a significant amount of selling pressure, and I think it’s going to be difficult to get above 4800, at least without some type of catalyst. The PPI numbers on Friday came in cooler than anticipated, so of course people started thinking more cheap money from the Federal Reserve. However, during the Thursday session, we saw CPI come in a little hotter than anticipated, so that, of course, has the market in confusion. At this point in time, $4,800 seems to be a barrier that’s going to be very difficult to overcome, and I do think that it’s possible we could get a little bit of a pullback.

The 4700 level underneath could offer support for a lot of momentum traders. So, I think we could very well see this market just bounce around in this general vicinity. That being said, if we were to break out above the 4800 level on a daily close, then I would be looking at the 4900 level followed by the 5000 level over the next several weeks or possibly even months. Remember, Wall Street is fixated on the idea that the Federal Reserve will cut interest rates multiple times in 2024, and that seems to be the only narrative driving the markets.

In general, I think this is a situation where you are looking for dips to take advantage of value, as has been the case for some time. I don’t want to short this market under any circumstances, at least none that I see at the moment. So, with that being the case, I remain bullish but cautious at the same time. One of the most important things you can do is keep your position size reasonable, at least until we get some type of major breakout. While I do think that probably comes given enough time, you do not want to have a lot of your trading capital tied up into any one position.

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