S&P 500 Price Forecast – S&P 500 Continues to Look Bullish

S&P 500 Technical Analysis

Taking a look at the S&P 500, you can see that we opened up pretty neutral, although I would say the fact that we are not pulling back after a nice bounce on Thursday does suggest that perhaps traders are willing to come into the market and pick things up on the first day of March, which does make sense. A lot of times there are new orders that have to come in for the larger funds. So typically, the first day of the month, we’ll see a little bit of action. At this point, even if we do pull back, I suspect that there are plenty of buyers underneath that are willing to step in and take advantage of any valuable opportunities. In other words, it’s a buy on the dip market.

The 5,000 level underneath obviously has a certain amount of psychology attached to it, so don’t forget about that either, as this market will typically trade from one big area to the next. The 50 day EMA is currently at the 4,900 level, and then underneath there we have the 4,800 level, which of course has been important previously as well.

So, at the end of the day, this is a market that you cannot sell because it plainly is very bullish, even though it’s only a couple of stocks that really are moving everything. Nonetheless, that’s the nature of how these markets have worked for several years, so I don’t think that changes and at this point in time people are still looking at the idea of trying to chase the latest hot thing. Right now, stocks and Crypto of course have their own part to play in this mania as well, but really at this point I think you have a scenario where everybody’s chasing for some type of return as they believe central banks are going to continue to juice the system down the road.

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