S&P 500 Forecast – S&P 500 Finds Support in The Early Hours

S&P 500 Technical Analysis

The S&P 500 rallied a bit during the early hours on Friday as we are now testing the 50 day EMA. Ultimately, we have to ask the question of whether or not the market is going to continue to go higher, perhaps reaching the 5,500 level. The 5,500 level has been important more than once and breaking above that could send a shot across the bow of the bears.

Short-term pullbacks at this point in time are just a continuation of the recent return to lower levels, but really at this point in time, the market is likely to see a lot of support at the 5300 level. When you look at the overall trend, this was just yet another pullback. It was brutal, but really it hasn’t changed a lot. When you look at this market from the perspective of the last three, six months, nine months, we’re still very bullish.

So, with this, I do think value hunters have come back in and they are willing to pick this market up. I fully anticipate that we will eventually go back towards the highs. But that doesn’t necessarily mean that it’s going to be easy. Quite frankly, the market just got a little bit nervous, and some of the bigger companies have started to slip. You should also keep in mind that we are in the midst of earning season, so that of course has quite a bit of volatility introduced to the market from time to time.

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