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

S&P 500 Technical Analysis

The S&P 500 pulled back a bit on Tuesday, and it’s probably worth noting that Thursday is Independence Day in America, so it could have a major influence on what happens next. A little bit of a short term pullback, probably in the realm of significant possibility, but I also recognize that there is a lot of support underneath, especially near the 5300 level. The 50 day EMA sits just above there, and I think comes into the picture as well. So, I like the idea of buying these little pullbacks. We are in the midst of summer, so it’s fairly quiet, and that might be part of what’s going on as well.

But between that and the holiday on Thursday, I think you’ve got a situation where the market is just probably going to be more or less killing time. Keep in mind that the S&P 500 is driven by just a handful of stocks. So, it becomes more or less an ETF of artificial intelligence companies at this point. Short-term pullbacks, of course, offer value that people are willing to take advantage of after a massive move higher like this.

And I do think that it’s probably worth knowing we have struggled a little bit with the 5500 level, it is a large round figure but at the end of the day it’s just another big handle and eventually we probably break above it. I’m looking for value, I’m looking for a pullback and then I am looking to get involved on the next bounce. The alternative scenario is we break above 5,550 and then just simply continue the overall uptrend.

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