S&P 500 Price Forecast – S&P 500 Continues to Look For Buyers

S&P 500 Technical Analysis

The S&P 500 rallied a bit during the early hours on Thursday as the 5,000 level continues to be important. Ultimately, I think this is a market that you have to look at very closely through the prism of whether or not we continue to see 5,000 as a floor.

It is worth noting that the trading action on Wednesday was horrible, but having said that, this is a market that I think has to make a bigger decision sooner or later, and the earnings season may be the very reason why that happens. We are forming a little bit of a bearish flag, so that suggests negativity, but at the end of the day, we haven’t broken down quite yet.

If we were to break below the $4925 level, at that point I think the S&P 500 might be in a little bit of trouble and perhaps in a little bit of a deeper correction. On the other hand, if we break above the $5100 level, then the market truly takes off to the upside, perhaps running towards the $5,300 level. This is all about the Federal Reserve and they were about as clear as mud during the Wednesday session, so it’ll be interesting to see how this plays out.

Quite often, the initial reaction is the wrong one. So we may have Wall Street stepping in to pick this up. Keep in mind though, we also have jobs coming our way, and that announcement, of course, will have a major influence on where we go next.

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