S&P Forecast – S&P 500 Continues to Look Positive

S&P 500 Technical Analysis

The S&P 500 was relatively quiet during the early hours on Wednesday, which makes a certain amount of sense, but it does look very positive overall. The main reason it makes sense that the S&P 500 has been quiet is the fact that Thursday, of course, is Independence Day in the United States, and then Friday we have the jobs number. And the jobs number, of course, normally causes absolute chaos. I just don’t see how that changes this time.

So, with that being the case, I like the idea of buying short-term pullbacks, taking advantage of value when it occurs. The 5,450 level underneath is a major short-term support level, but if we break down below there, I see plenty of support underneath there as well. For example, we have the 50-day EMA that sits right around 5350, and then we have the 5300 level, which of course is a large round figure and has been important in the past.

Ultimately, this is a market that I think given enough time will eventually go much higher, but at the end of the day, this is a market that might be a little overstretched. So, it’s a lot to ask for it to continue to go a lot higher in a very short amount of time, but I do think eventually value hunters return on each and every dip, as it offers a chance to get cheap entries in a market that is obviously bullish longer-term. However, you will need to be careful as liquidity will be an issue over the next couple of sessions.

For a look at all of today’s economic events, check out our economic calendar.