S&P 500 Price Forecast – S&P 500 Likely to Continue The Recovery

S&P 500 Technical Analysis

You can see that the S&P 500 is doing everything it can to break above the 5100 level in the early hours. And that, of course, is a fairly good sign. With that being the case, I think you’ve got a situation where traders are going to see if we can break above there, and then once they do, it probably opens up the door to higher pricing towards the recent highs.

That being said, I also recognize that market participants are going to have to be dealing with geopolitical risk, earnings season and the Federal Reserve. Nonetheless, it certainly shows a significant amount of resiliency. So that, of course, is something worth paying attention to. With that being the case, I think ultimately you have to look at this through the prism of a market that eventually will probably take off towards the highs and maybe even break above 5300.

However, if we were to break below the most recent swing low, which is at 4928, that could open up a move in the S&P 500 down to the 200 day EMA. Either way, you don’t want to fight the trend and the trend is most certainly strong at the moment. So, you’re either a buyer on dips or you were just simply on the sidelines waiting for more momentum to appear. You cannot short this market at the moment, as it is far too bullish from a longer-term perspective. Furthermore, it generally doesn’t pay to short indices that aren’t equal weighted anyway.

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