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

S&P 500 Technical Analysis

The S&P 500 initially pulled back a bit overnight in electronic trading, then it found enough buyers to turn things around. Yet again, this is a market that has been very bullish for some time, and I think we’ve got a situation where traders will continue to look at this through the prism of a market that eventually breaks out to the upside and continues towards the 5700 level. The market is likely to remain very volatile, but keep in mind that the market also is mainly a situation where if just a handful of stocks out there come into play and start rallying, then the S&P 500 pulls right along with it.

Remember, it’s not an equal weighted index. So as long as the artificial intelligence trade, for example, is going well then, the S&P 500 should as well. So far, the earnings season, which just started with some financials has been fairly good. So that helps also. We are a little extended. So, I wouldn’t be surprised to see a lot of sideways action.

But ultimately, I do think that we eventually break out to the upside. On a significant pullback, the 5500 level underneath would be your floor in the market, especially now that the 50 day EMA is racing towards it, offering yet another technical reason to think that it is support.

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