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

S&P 500 Technical Analysis

The S&P 500 has taken off to the upside, and analysts and traders have completely reversed the panic selling during the previous session. Quite frankly, this is a market that continues to see a lot of upward pressure and I think at this point it makes a certain amount of sense that as traders believe that the Federal Reserve is going to cut rates, that they buy equities. That’s what Wall Street does. They’ve been begging for lower rates for years, and now we’ll have to wait and see whether or not that actually plays out.

But in the short term, it certainly looks like we are going to break higher and probably break the highs with this. I have no interest in shorting the market. I think a pullback at this point sees a lot of support at the 5500 level, and therefore more. I just don’t see how you can get short. The market has been bullish for what seems like a lifetime now, and every time I think it’s overdone, we go higher.

So, it’s obvious that we’re running on momentum probably more than anything else. So, with that, all you’re doing is chasing the momentum. You don’t want to get heavy into the market if you’re getting into it now. But clearly there’s only one direction to be trading. And that is most certainly to the upside at this point in time, due to the fact that the market is likely to continue to see a lot of buyers.

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