S&P 500 Price Forecast – S&P 500 Continues to Look For The Bottom

S&P 500 Technical Analysis

The S&P 500 initially pulled back just a touch, only to turn around and show signs of life again. By doing so, the market looks as if it is going to continue to try to reach the highs. And therefore, I think we are just simply going to be taking advantage of value. The value proposition is just simply that it is a small drop in a longer term uptrend. If we continue to see a little bit of a pullback, that only offers more value that you can take advantage of.

The 50 day EMA is near the 5,300 level, and I think that’s your floor in the market, although it is quite far from where we are now. I think eventually we will bust through the 5,500 level, which is the overreaching resistance at the moment. But once we break above there, then the market is likely to continue to just rise and kick off its next leg higher overall. Ultimately, this is a market that is driven by a handful of stocks.

That’s the way Wall Street has traded, especially in the last couple of years, but basically since the great financial crisis. And therefore, it’s whatever the flavor of the week is. Obviously right now it’s artificial intelligence. So, any stock that has to do with artificial intelligence that rises has an outsized effect on the market. I continue to look at this more or less as a buy on the dip scenario.

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