S&P 500 Price Forecast – Stocks Celebrate Job Miss

S&P 500 Technical Analysis

The S&P 500 shot higher during the early hours on Friday as the non-farm payroll numbers came in about 60,000 less than anticipated. Because of this, it looks as if traders on Wall Street are celebrating the idea of perhaps the Federal Reserve cutting rates sooner rather than later. Whether or not that’s true is something that’s still open for debate, but at this point in time, the initial reaction seems to be that Wall Street loves unemployment. So, with that being the case, short-term pullback should end up being a buying opportunity with the 5,000 level underneath being a massive amount of psychological and structural support from what I’ve seen over the last several months.

Before it’s all said and done, it would not surprise me at all to see the S&P 500 go looking toward the 5300 level above, which of course was basically where we pulled back from. If we were to turn around and break down below the 4950 level, that would be an extraordinarily negative turn of events, but it’s not something that I expect to see anytime soon.

So, with that being said, I remain bullish, but I also recognize that volatility is here to stay. Because of this I wouldn’t get too big with my position, as the narrative seems to be all over the place in general, and the charts are starting to reflect this. Dangerous, yet positive, continues to be the way forward from what I can see. The markets will continue to be very erratic, but ultimately, I think the buyers are starting to take over again.

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