S&P 500 Price Forecast – S&P 500 Continues to Look Bullish

S&P 500 Technical Analysis

We were closed on Friday, but you can see how Thursday ended up pretty much unchanged, showing that the market tried to break out and it could not sustain its momentum. Not a huge surprise here because it was the last day of the quarter and therefore, we probably had some rebalancing going on from longer term funds. This is also a phenomenon that retail traders understand, and therefore it becomes a bit of a repetitive cycle.

That being said, Monday being the first day of the quarter typically means that we are going to see more money come flowing into this market. And at this point in time, it’s likely that short-term pullbacks continue to be the best way to get involved. The 5200 level is support, 5100 after that, and then eventually 5,000.

The 50 day EMA is in the mix as well, so that should also offer support. Keep in mind that we’ve been in a solid 45 degree angle trajectory, which is typically very sustainable, we’ll just have to see. But I think it’s going to be choppy yet positive. That’s probably the way to look at this market. Again, Monday is the first day of the quarter, so it should see inflows as typically traders try to put on new positions for their clients for Q2. I also think that the last few days of negativity will only make buying a bit more enticing for most traders out there. I have no interest in trying to short this market anytime soon.

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