S&P 500 Price Forecast – S&P 500 Continues to Find Buyers on Each Dip

S&P 500 Technical Analysis

The S&P 500 initially pulled back just a bit during the trading session on Monday in the early hours, only to turn around and show signs of life. By doing so, it looks like we have a scenario where you continue to find plenty of value hunting. This is a market that continues to be very noisy, very choppy, but at the end of the day, there are still plenty of people willing to buy into the market. Keep in mind that the market is going to be a situation where you have value hunting, and because of that, there will be plenty of people who look at this as an opportunity.

Now, when I look at the S&P 500, I cannot help but notice that there’s only about six or seven stocks that are moving the entire thing, so keep that in mind. And therefore, as long as the usual suspects are doing well, then the S&P 500 should end up being a bullish market. At this point, I think 5,000 is going to end up being your floor in the market and therefore, with that being the case, I think you’ve got a situation where you have to look at this through the process of just simply taking advantage of value every time it appears. Loose monetary policy could be coming down the road and I think that’s what a lot of traders are banking on as that is like rocket fuel for stocks.

All of that being said, we are in a perfect 45 degree angle uptrend and a classic buy on the dip setup. This is a sign that there is in fact, quite a bit of interest in driving this trend much higher, and therefore it doesn’t look overdone recently and that of course will lead into the expression “buying begets more buying.” Stock markets have been basically momentum driven for the last several years, and this year looks like it will be more of the same.

For a look at all of today’s economic events, check out our economic calendar.