S&P 500 Index Forecast June 26, 2013, Technical Analysis

The S&P 500 had a positive session on Tuesday, after forming a hammer like candle for the Monday session. We still feel that this market needs to overcome the 1600 level in order to become bullish again, we do believe that it is going to happen sooner or later. Nonetheless, we need to see that daily close above 1600 in order to feel comfortable going long, and at that point time we believe that we will see most of the sectors in the S&P 500 do quite well. On top of that, we believe that as the markets digest the possibility of Federal Reserve tapering, they will begin to understand that the Federal Reserve has talked about stepping away from quantitative easing for good reasons – and improving American economy. Again, above the 1600 level we are buyers.