S&P 500 Price Forecast – Stock Markets Continue to Show Upward Momentum

US Stock Market Forecast Video for 11.12.23

S&P 500 Technical Analysis

The S&P 500 pulled back just a bit during the early hours on Friday as we continue to see a lot of volatility and choppiness in this same consolidation area. That being said, the market has turned around after a stronger than anticipated jobs number, which of course is something that Wall Street’s cheering against. They want to see the Federal Reserve start throwing cheap money around, and they need the Federal Reserve to be in a situation where they have to start cutting rates. Remember, the stock market has nothing to do with the economy, it’s about the flow of money.

Underneath, the 4550 level offers a significant amount of short-term support, and if we were to break down below there, then it’s likely that we could go down to the 4500 level. The 4500 level is an area that will attract a lot of attention due to the fact that it is a large, round, psychologically significant figure. This would feature a lot of noisy behavior, and of course quite a bit in the way of options barriers that could come into the picture. If we break down below the 4500 level, then we could go down to the $4300 level.

On the other hand, if we turn around and break above the 4625 level, then I think the market is likely to go higher, perhaps reaching the 4750 level. Obviously, there is assumptions of the “Santa Claus rally” coming, so I think there is a certain amount of psychology coming into the market. Either way, we have been consolidating for the last couple of weeks, trying to work off some of the excess froth that we have seen in the market after the massive gains of the last month or so. Ultimately, the market continues to run on the idea of whether or not the Federal Reserve is going to pass out cheap money, and therefore you will have to watch the bond markets. If the bond markets continue to drop, that will help stock markets, and at this point that’s about the only thing that people are paying attention to it seems.

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