S&P 500 Price Forecast – S&P 500 Continues to See Attempts to Stabilize

S&P 500 Technical Analysis

The S&P 500 drifted a little bit lower during the trading session on Thursday, but at this point in time, we are slowing down some of the panic. Because of this, it would not surprise me at all to see a little bit of a bounce, and it’s probably worth noting that the 50-day EMA is in this neighborhood as well. So that comes into the picture from a technical analysis standpoint. Quite frankly, even though it has been a brutal sell-off, the reality is when you look at the daily chart, it’s very much an uptrend and it remains that way. So be cognizant of this.

Furthermore, the S&P 500 is not an equal weighted index, so it’s really not even built to fall for any significant amount of time. All you need are some of the bigger companies to start picking up the slack, and the next thing you know, you have an uptrend again. If we can turn around and break back above the 50-day EMA, then I think you have an opportunity to get to the 5,500 level, an area that will have a lot of psychology attached to it.

Anything above there continues the longer term uptrend and goes much higher, perhaps all the way back to the highs, which are just shy of the 5700 level. If we were to break down from here, then I believe that the market will start to look towards the 5300 level underneath as massive support as it has proven itself important multiple times in the past.

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