S&P 500 Price Forecast – S&P 500 Continues to See Buyers

S&P 500 Technical Analysis

The S&P 500 rallied slightly during the trading session on Tuesday in the early hours as it looks like we are going to perhaps try to turn around and reach even new highs. At this point, the 5100 level is an area that a lot of people will be paying attention to, but I think it is just for the short term. Quite frankly, the real story was blowing past the 5,000 level, and the fact that we could do that does suggest that perhaps there are more gains ahead. And why not? This is all about central banks and a handful of stocks. Remember, the S&P 500 should actually be called the S&P 7, as it’s just a handful of stocks that run everything.

Short-term pullbacks at this point in time will more likely than not be bought into with the 5,000 level being a significant support level due to market memory and of course, psychology. The market is a little bit stretched, but quite frankly, I’ve been able to say that for a good month now, and every time we pull back, it does seem like there are plenty of traders out there willing to get involved. With that being the case, I just don’t see an argument for shorting this market.

And not only do I see support at the aforementioned 5,000 level, but I see it at 4,900, the 50-day EMA, and of course 4,800 underneath there. As far as the target is concerned, I don’t really have one other than the 5,100 level above being the next target and barrier, but it looks as if we will probably break above there. The market does tend to move in 100 point increments, so that could give you 5200 as a potential viable target. Either way, the trend is very much ensconced here and I just don’t see any viable way to fight it, so you are either flat, being neutral, or you are buying dips.

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