S&P 500 Price Forecast – Stocks Grinding Away

US Stock Market Forecast Video for 18.12.23

S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the course of the trading session on Friday, as we are trying to sort out whether or not we can continue to go higher. The market seems to be looking at the 4700 level as a bit of a magnet for the price, and I also recognize that the 4600 level underneath could be support, and now the 4500 level underneath there also offer support as well. Ultimately, this is a market that I think will eventually pull back, if for no other reason than people will be looking to make a profit heading into the holidays.

Keep in mind that it could be very volatile between now and New Year’s Day, and once we head into next week, there is a serious lack of liquidity out there, as Christmas and New Year’s Day will become front and center for most traders. If we turn around and break above the highs of the last couple of days, then it’s likely that we could go looking to the 4800 level, perhaps even the 5000 level after that. In general, this is a market that I think continues to see a lot of noisy behavior, but I do think that eventually you can probably find buyers. Pay close attention to the bond markets because the yield coming out of the United States will have a major influence on the stock markets and risk appetite going forward.

As yields drop, that has helped the S&P 500, but when they start to pick up again, that also hurts the index. That being said, we are getting close to the time of year when people will start to step out of the market, and therefore the lack of liquidity could be a major contributor to a lot of volatility as well, so be cautious and start to think about longer-term trading more than anything else, and therefore you need to keep your position size reasonable. That being said, even if more likely than not we see a pullback, I would not be a seller of this market anytime soon. Ultimately, this is a market that is overdone.

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