S&P 500 Weekly Price Forecast – Stock Markets Continue to Rally

US Stock Market Forecast Video for 26.12.23

S&P 500 Weekly Technical Analysis

The S&P 500 has pulled back just a bit only to turn around and show signs of life. At this point, the market looks as if we are ready to go looking to the 4800 level, perhaps even the 5000 level over the longer term. That being said, we are overdone so I do think that we need to look at this through the prism of buying dips, and taking advantage of value if and when it finally shows up. Quite frankly, I would love to see this market pullback in order to show signs of value that you can take advantage of.

Underneath, the 4600 level is an area that could offer a bit of support, and then perhaps even down to the 4500 level. The 4500 level of course is a large, round, psychologically significant figure, and an area where we have seen a lot of action in the past. Ultimately, traders will continue to look at this through the prism of the Federal Reserve loosening its monetary policy, suggesting that perhaps the liquidity will be pumped into the stock market, because at this point in time it’s the only thing that Wall Street tends to care about.

It has nothing to do with the economy, and it’s all about the idea of getting cheap and easy money to trade in the Wall Street casino. The market at this point in time is overdone, so we desperately need to see some type of pullback in order to find value that we can take advantage of. It’ll be interesting to see how the week between Christmas and New Year’s behaves, because it could be a profit-taking opportunity.

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