S&P 500 2024 Forecast: Elliott Wave Analysis and Goldman Sachs Target

The stock market is facing potential headwinds as financial conditions tighten and liquidity is drained from the system, leading to a possible contraction in S&P 500 multiples. Rising Treasury rates and widening credit spreads may result in the S&P 500 falling within a range of 3,800 to 4,100 over the coming year. The unwinding of the Bank Term Funding Program and quantitative tightening by the Fed are contributing to the decline in reserve balances and liquidity. As financial conditions tighten, equity valuations may decrease, impacting stock prices.