S&P Weekly Price Forecast – S&P 500 Continues to Find Buyers

S&P 500 Weekly Technical Analysis

The S&P 500 initially pulled back just a bit during the trading week, but then turned around to test the 5,500 level and at this point the market looks very much like it’s going to continue to pay attention to 5,500 but given enough time I do think we will go much higher. Short-term pullbacks offer buying opportunities near the 5,300 level and 5,300 is an area that previously had been resistant so one would assume there’s a certain amount of market memory there and that’s just assuming we can drop the 200 points to find it.

The S&P 500 has become an ETF, which basically consists of Nvidia, maybe Apple, Microsoft, that’s about it. So as long as Wall Street continues to concentrate money into a handful of stocks, the S&P 500 will rally. I’m not saying it’s healthy and quite frankly, it’s not, but at this point in time, it looks like that’s the game we are playing and as long as that’s going to be the case this is the game you have to acknowledge.

Now with that being said it’s also worth noting that the end of the week is rather quiet due to the fact that PCE index numbers came out basically as expected and therefore we didn’t get any surprises. With that I’ll remain bullish, but I like buying short-term dips more than anything else. All things being equal, I just don’t see how this index falls for any significant amount of time.

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