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

S&P 500 Technical Analysis

The S&P 500 rallied ever so slightly in the early hours on Tuesday, but this could end up being a replay of the last couple of sessions. After all, we’ve seen the S&P 500 rally, but give back those rallies on both Friday and Monday ahead of this session. We do have producers price index numbers coming out during the day. So that might have a little bit of an influence. But really at this point in time, it’s somewhat obvious that short-term pullbacks are going to continue to attract people wanting to jump into the market and buy it. The 5100 level underneath, I think, is a pretty significant support level, not only based on the previous resistance, but the 50-day EMA sitting in that area as well.

The 5300 level above is a major ceiling in the market, and if we can get above there, then obviously it’s an uptrend continuation play. Speaking of which, I suspect that’s probably where all of this is heading anyway, so you certainly cannot short this market. It’s far too strong. And with that being the case, you’re looking at dips as buying opportunities or even value going forward.

Keep in mind there’s only a handful of stocks that move the S&P 500 anymore as everybody is concentrated in about 6-7 stocks. So as long as those big names continue to do well, the S&P 500 will follow right along with it. This is a market that has become and ETF more than anything else as this point.

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