S&P 500 Price Forecast – S&P 500 Continues to Find Buyers

S&P 500 Technical Analysis

The S&P 500 pulled back initially during the trading session on Thursday, but then turned around to show signs of life again. Ultimately, this is a market that I think you do need to pay close attention to as it is going to be focusing on the Friday jobs number more than anything else. With that being said, it is worth noting pulling back will more likely than not end up being an opportunity to get long again. After all, this is a market that has been extraordinarily bullish, and I don’t see that attitude changing. Remember, it’s just a handful of stocks that drive the stock market these days, so as long as all of the usual suspects are doing well, so will the index.

We are at a perfect 45 degree angle uptrend and that typically means that we are in just a very strong trend. Furthermore, a lot of traders out there continue to see the Federal Reserve cutting rates later this year and that of course has a lot to do with how they behave in the stock market. As long as it looks like monetary policy is going to be loose then it looks like stocks will continue to strengthen over the longer term. At this point, I suspect we are going to go to the 5200 level, but having said that, underneath, if we do pull back, the 5000 level could be a bit of a floor in the market. I like buying dips. I don’t like getting too big ahead of the jobs report, but I do recognize that the overall trend does suggest that we are buyers and just cannot sell this market right now.

With the jobs of her coming out on Friday I expect to see a lot of volatility but if we get some type of massive selloff, I will more likely than not jump in and pick up the index as that has been the behavior of the S&P 500 for some time now.

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