S&P 500 Price Forecast – S&P 500 Continues to Drift

S&P 500 Technical Analysis

The S&P 500 has pulled back just a little bit during the early hours on Monday to kick off the trading week, but quite frankly, this is a market that is an extraordinarily bullish one, and therefore, it’s probably only a matter of time before traders come in and pick this market up. With that being the case, I think you’ve got a situation where, when we do drift lower, there should be plenty of value hunting going on. Above, we have the 5,275 level offering a bit of resistance. And if we can clear that, that would obviously extend the rally. That being said, you’ll notice that for the bulk of the year, we’ve just been in a nice trending channel. So, a little bit of a pullback could make quite a bit of sense here.

It also could offer quite a bit of value, especially if we were to drift down toward the $5,150 level. All things being equal, I’m just looking at shorter term frames, such as the hourly chart, for buying opportunities and taking advantage of them. That’s how the market has behaved for some time, and I just don’t see it changing anytime soon. Furthermore, you also have to pay attention to the fact that the Federal Reserve is going to be cutting later this year, and that seems to be the one thing that Wall Street truly cares about. And that, of course, is cheap money. We have been trained since the great financial crisis that destruction of money, or I should say printing on money, leads to higher stock prices. So, it is a vicious feedback loop.

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