S&P 500 Price Forecast – S&P 500 Continues to Find Support on Thursday

S&P 500 Technical Analysis

The S&P 500 initially pulled back a bit during the early hours on Thursday but has since bounced enough to show signs of life again. Ultimately, this is a market that I think does go much higher and we are in the midst of what I believe is a bullish flag being formed. If we break down from here, the 5300 level would be a significant support level, and that’s assuming that we would even pull back that far. The market is a little bit stretched at this point so the sideways action that we’ve seen over the last four or five days certainly makes sense.

That is further compounded by the idea that the 5,500 level is just above. And of course, there’s a lot of psychology when it comes to the 5,500 level. Once we break above 5,500, I think that this is a market that could just continue the overall uptrend for the foreseeable future. That doesn’t mean that we just go straight up in the air, but what it does mean is that traders will feel a bit better.

Once we’ve gotten past that level, it would be a major victory, and on top of that, you could also make an argument that we will have cleared a rather important options barrier. So it’ll be interesting to see how this plays out, especially heading into the weekend. If we close above 5500, that’s probably a sign that we’re going to go quite a bit further to the upside.

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