US Stock Market Forecast Video for 08-02-2024
S&P 500 Technical Analysis
And as per usual, it looks like we’re going to go higher again and try to eventually hit that 5,000 level, that’s going to be the big driving factor for most traders at this point in time. Anytime the market pulls back, you have to be a buyer because it is just simply screaming to the upside, which is a bit ironic considering that the Federal Reserve wants to see less inflation.
And although the stock market isn’t necessarily inflation, it makes people take their wealth a little bit more seriously and spend more money. So it’s almost as if the market is pushing the Federal Reserve around and not the other way around. So with this being the case, I think anytime we fall, you have to be looking to pick up S&P 500 contracts, especially around the 4900 level and then again at the 4800 level. This is an area that I think would be shocking to break below anytime soon.
5,000 will more likely than not end up being a bit of a barrier that’s difficult to overcome, but it’s going to be a psychology thing. Nothing more, nothing less. This is because we’ve never been there before and it’s a large round number. So obviously, that will attract a lot of attention. The 50 day EMA is all the way down in the 4750 level, but it is rising rather steadily showing just how relentless the uptrend has been since. This has been relentless, and therefore I don’t think it is going anywhere soon.
At this point in time, it’s impossible to short this market, but at the same time, you have to be very cautious going all in because rallies like this do tend to end rather abruptly. Having said that, the S&P 500 is really only seven stocks. So as long as the usual suspects are doing well, the S&P 500 will go higher. How much higher remains a mystery, but I think a lot of traders are too focused on 5,000 above to think about that at the moment.
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This article was originally posted on FX Empire
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