S&P 500 Price Forecast – S&P 500 Continues to Fall as The Market Reacts to PMI

S&P 500 Technical Analysis

The S&P 500 has really fallen hard during the trading session here on Wednesday as the PMI numbers, of course, were a bit of a mixed bag and therefore I think a lot of people are starting to worry about the US economy itself. Furthermore, we are in the midst of earning season and there is some noise coming from that as well so it makes sense that we would pull back. However, we haven’t even broken below the 50-day EMA so although it has been a little bit painful as of late, the reality is that the market is likely to continue to see plenty of buyers underneath given enough time.

When you look from the recent high to where we are at the point of recording, we’re only down 3.5%. So, let’s not make a mountain out of a molehill here. It’s just a simple pullback. Now if we break down below the 50 day EMA, that could open up a move down to the 5300 level, but that still isn’t a huge meltdown. In fact, that’s probably a really nice buying opportunity.

If we were to drop to the 5300 level, then we’re talking about a 6.5% drop. Still a nice opportunity in a market that has been straight up in the air since October of 2023 gaining roughly 38%. So, with all of that being said, let’s please keep a level head. This isn’t the beginning of the end of the world. It’s going to end up being a buying opportunity eventually. We just need to see all of the panic jump out of the market. At this point, you should be observing, probably not trading.

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