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

S&P 500 Technical Analysis

The S&P 500 has been somewhat noisy in the early hours on Monday as we continued to dance around the 5300 level. On Friday we saw a complete reversal of what originally looked to be a very bad day. We saw something like 22 billion nominal value play in the spies come into the picture. And this, of course, sent the S&P 500 much higher. Was it the end of the month buying for options? Maybe, but really the first day of the new month being Monday generally will attract inflows as money managers put money to work.

So, with that being said, I like the idea of buying short-term dips, and I do think that eventually we break out to the upside. If we can clear the 5,350 level, then we can go much higher, but we do have some work to do. The last couple of days have been very noisy, and generally that does shake a certain number of people out. But once we break a fresh new high, then I think the next real target is probably closer to the 5,500 level, an area that is a large round number, I assume has a large number of options attached to it. And of course, we’ll make good headlines. Everybody loves good headlines. Either way, we are in an uptrend that hasn’t changed. And with that being the case, I think you have to continue to look at each and every pullback as a potential opportunity.

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