S&P 500 Price Forecast – S&P 500 Continues to Look For Floor

S&P 500 Technical Analysis

The S&P 500 initially pulled back just a bit during the early hours on Friday only to turn around and show signs of life. By doing so, the market looks as if it is going to hover above the 5,500 level, which is an area that is a large round figure and an area that previously had been resistance. The 50-day EMA is hanging around this area as well, and as a result, the market is likely to continue to see a lot of back and forth and questions asked of it.

The market bouncing from here could send the S&P 500 back towards the 5,700 level. If we can break that, then obviously it would be a very bullish sign. We’ve seen a lot of stock market rotation over the last couple of days. So, the index falling the way it has might be a little misleading because what we’re seeing is a lot of the overvalued companies being cut back.

The underlying internals do show a lot of churn and when money pulls back from the biggest companies it has an outsize effect, just like it does when it goes into them. In general, I think this is a market that remains very much in an uptrend, and it wouldn’t surprise me at all to see us reaching the highs again, maybe in the next week or two. Keep in mind, it is the earning season right now, so that also has a certain amount of influence.

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