S&P 500 Price Forecast – Stock Markets Gap Higher to Kick Off The Week

US Stock Market Forecast Video for 27-12-2023

S&P 500 Technical Analysis

The S&P 500 has gapped higher to kick off the trading week, as it looks like we are trying to do everything we can to break out to the upside, perhaps clearing the 4800 level. If and when we do, that should send the S&P 500 much higher, perhaps reaching toward the 5000 level. Short-term pullbacks at this point in time are very possible though, with the 4700 level underneath offering a significant amount of support. The 4700 level is an area that I think a lot of people will be paying attention to for massive support, as we have already bounced from there.

At this point, we have to ask the question of whether or not we are going to pull back, or if we are just simply going to go sideways and work off quite a bit of froth from the major move higher. After all, we are in between the major holidays, and therefore, it would not be surprising to see this market just kind of bounce around. That being said, that lack of liquidity can also cause the market to act very oddly, so you need to be cautious with your position size.

Regardless, this is most certainly a bullish market, and even if we were to get some type of significant pullback, I think the best thing you can do is buy value when it appears. The 4700 level of course is the first support level, but if we were to break down below there, the 4600 level is an area that I think would attract a lot of attention also. Underneath there, then we have the 4500 level, which of course is a large, round, psychologically significant figure and we have just seen the 50-Day EMA cross, so I think you’ve got a situation where the traders out there will continue look at this through the prism of a bullish market, and therefore you certainly cannot be a seller. In general, this is a market that only goes higher over the longer term, but if we do get some opportunity to buy it at a lower level, you have to take advantage of it.

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