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

S&P 500 Technical Analysis

S&P 500 has been pretty quiet ahead of the cash session on Friday. Not a huge surprise really due to the fact that we have quite a bit of exhaustion. Ultimately, I think this is a market that does go higher, but we may get a short term pullback in the process that would actually be very healthy as the market has been overdone yet again.

Ultimately, I think the 5200 level underneath is support, right along with the 5100 level, and then again, followed by the psychologically big figure importance of 5,000. Right above 5,000, we have the 50-day EMA, which we have been running far above for some time, but it has acted as a bit of a trend line as well. So all of that put together and the fact that the Federal Reserve is almost certainly going to be cutting rates three times this year, and you have a recipe for higher prices in the S&P 500.

Remember, this is not an equal weighted index, so it’ll be the same handful of stocks that push everything higher as has been the case all year. Passive investing for the most part makes sure that we create one bubble after the other. And right now, it just happens to be in the AI sector.

Short-term pullbacks should continue to be buying opportunities, and I do think that you look for value. As far as chasing all the way up here, you could, I suppose, but you need to do so with a very small position so that you can give a wide berth for your stop losses. The longer-term target at this point, I think, is probably 5,500, but right now, we are looking a little hesitant, which makes sense after the last couple of trading sessions.

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