US 500 analysis: the market is on the rise

The US 500 remains optimistic. The market expects further growth. Find out more in our US 500 forecast for next week.

US 500 forecast: key trading points

• The US stock market is bullish
• All 11 market sectors appear strong
• Resistance: 5,677.5, Support: 4,670.0
• US 500 price forecast: 5,123.5 and 4,670.0

Fundamental analysis

The US stock market appears extremely confident at the beginning of another August week. The past five trading days were highly productive, with the main indices seeing the best week this year.

The DJIA index grew by 2.94% over the past week, the S&P 500 gained 3.93%, and the Nasdaq Composite increased by 5.29%. All 11 sectors of the broad market index closed the week higher, with tech companies leading the rally.

The semiconductor and chip business became the leader, with Nvidia’s stock gaining 18.9%, SMCI surging by 23.6%, AMD increasing by 10.6%, and Micron adding 16.0%.

Investors will focus on the minutes of the US Federal Reserve's latest meeting and the speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium. The weekly US 500 analysis suggests that positive sentiment will persist.

US 500 technical analysis

The US 500 H4 chart shows that the market has declined towards 5096.2, the first target. A corrective wave towards 5570.0 (testing from below) has been completed today, 19 August 2024. Subsequently, another wave is expected to begin, aiming for 5123.5. A breakout below this level will open the potential for a movement towards the local target of 4670.0 in line with the trend.

Key US 500 level to watch:

• Resistance level: 5,570.0 – if the price rises above this level, it could reach 5,677.5
• Support level: 5,123.5 – a breakout below this level will signal that the trend continues to 4,670.0

Summary

From the fundamental perspective, the US 500 index has the potential for further growth as it has already undergone a correction. However, technical indicators in the US 500 price forecast for this week suggest that the downtrend will continue to the 4,670.0 level.