S&P 500 Price Forecast – S&P 500 Continues to Meander

S&P 500 Technical Analysis

The S&P500 has done very little during the early hours on Monday and it looks like we just don’t have anywhere to be. I suspect we are in the middle of the summer doldrums as we work off a lot of upward pressure by going sideways. There is a severe lack of momentum a lot of times in the summertime, so we may be relegated to simple short-term range bound trading. This is a market that cannot seem to find a big reason for moving, and therefore I think you are looking for the market to move before putting money to work in this index.

Either way, I have no interest whatsoever in trying to short this market, so if it does start to fall, I’ll be looking for buying opportunity. I believe that the 5300 level continues to be a major floor in the market and I do think that this is a scenario where a lot of traders are going to be looking for value. If we break above the 5,530 level, then we can go much higher.

At that point, it’s likely that you would see a resumption of the overall uptrend. But all things being equal, this is a market that I think is just trying to catch its breath and as a result, it’s likely to be a situation where you are just going to kill time, buy short-term dips, maybe take quick profits, but clearly, you’re looking to the upside and not the down.

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