S&P 500 Forecast 09/01: Eye The 7,000 Level (Video)

2026-01-08 11:12:20

(MENAFN- Daily Forex) A breakout to the upside opens up the possibility of 7000 in the S&P 500, something I expect to see somewhat soon.

S&P 500

The S&P 500 dipped to kick off the trading session on Thursday but has shown a bit of resiliency back into the market as the S&P 500 is looking forward to the non-farm payroll.
It does make a certain amount of sense that people were out there taking some profit or at least just closing positions.

The volatility at 8:30 New York time on Friday will, of course, be something to be concerned about, but I think ultimately the longer-term trend continues. After all, Wall Street is pushing the Federal Reserve to cut a couple of times in 2026, and if they do in fact do that, generally speaking, that makes Wall Street happy.

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The 6800 level below is the floor in the market right now, right along with the 50-day EMA. As long as we can stay above there, I think we're in pretty good shape Momentum and Strategy

A breakout to the upside opens up the possibility of 7000, something that I expect to see sooner rather than later. It does make a little bit of sense, though, that we are struggling to find momentum right now because of the week we are in. We are in the 1st week of January, typically a very choppy and volatile time, and with that, I think a lot of people are waiting to see this 1st data point come and go before they put a lot of money in.

Regardless, buying on the dips is a tried and true strategy in the S&P 500. I don't think that changes anytime soon, and I certainly wouldn't short this market. If you don't want to buy it, that's 1 thing, but shorting it I think would be extraordinarily dangerous. Ultimately, I like the S&P 500. I think it goes higher; we just might have a little bit of work to do to find the momentum.

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