S&P 500 Price Forecast – the S&P 500 continues to show strengthDuring the trading session on Wednesday, the S&P 500 rallied a bit, breaking above the 2790 level in anticipation of the FOMC statement. Ultimately, I think that the market will eventually go looking towards the 2800 level above, an area that has attracted a lot of attention in the past. I think short-term pullbacks could be buying opportunities unless of course we get some type of shock out of the statement.
The S&P 500 rallied slightly during the trading session on Wednesday, breaking above the 2790 handle, and then reaching towards the 2800 level. I think that the market should continue to grind to the upside, and as you can see on the chart I have the 50 hour SMA. That is a moving average that continues to be of importance, and therefore I think we will continue to see technicians pay attention to it. I think short-term pullbacks offer value regardless, and once we get the FOMC Statement of the way, it’s likely that we will see a resumption of the overall trend. If we can break above the 2800 level, the market should continue to go higher after that, and it should bring in fresh money.
The market participants continue to be a bit skittish though, so I look at pullbacks as value and would actually welcome one. I think that the 2775 level underneath continues to be a short-term floor, but it is much more supportive at the 2750 level. The attitude of participants continues to be very bullish, and I think that the momentum should continue, given enough time. I like the idea of building up a larger position for the eventual breakout above the 2800 level. Once we get above there, the market should pick up quite a bit of momentum.