S&P 500 Price Forecast – S&P 500 Continues to Bounce

S&P 500 Technical Analysis

The S&P 500 initially pulled back just a bit during the early hours on Tuesday only to turn around and show signs of strength. At this point the market is likely to go looking towards the 5,690 level, possibly even the 5,700 level. Underneath, we have the 5,500 level offering a significant amount of support, and it’s probably worth noting that it is a support range that drops down to the 5,450 level, which is also backed up by the 50-day EMA. The 50-Day EMA will obviously attract a lot of attention, as traders on the daily chart often look at it as an indication of the shorter term (quarterly) momentum and trend.

With all of this being said, this is a market that I think continues to be more of a buy-on-the-dip scenario, and that’s exactly what we’ve seen play out over the last couple of days. I do believe we will eventually go looking to the highs again, and then perhaps even break above that 5,700 level, as the market is relentlessly bullish and we are in the midst of earnings season, so that could give us a bit of fundamental momentum as well. So, with that being said, I think this is a market that you continue to buy dips in and just hold steady as she goes as it is obviously bullish, as it has been for what seems like a lifetime. At the end of the day, the traders on Wall Street will almost always find a reason to buy.

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