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

S&P 500 Technical Analysis

Taking a look at the S&P 500 you can see that we have pulled back just a bit to slice through the 5,000 level. Underneath, the market will have plenty of support, especially near the 4925 level, possibly even the 50 day EMA, which is sitting just above the 4500 level. All things being equal, it’s likely that there will be plenty of value hunters willing to come into the market and take advantage of anything along the lines of the S&P 500 being on sale. Remember, there’s just a handful of stocks out there that move the S&P 500, so you need to pay attention to the Magnificent 7, as they’re what everybody pays attention to, as well as the Federal Reserve and its monetary policy.

The reality is that if those big stocks move, the index moves right along with it. I do think at this point in time, we are more or less in a feedback loop where we just continue to grind higher. But if we do get a pullback, like I said, I think there will be plenty of value hunters out there all the way down to at least 4,800. That’s 200 points south of where we are right now. If that’s going to be the case, then you’re just looking for opportunities to buy, buy, and buy again.

Ultimately, I do think that we break above the high and perhaps go looking to the 5100 level, but I would have to wonder, how much longer can this go on? Well, that’s hard to say because we’ve been pretty much straight up in the air since Halloween of last year to gain about 24%. That’s an outrageous gain. That’s a really good year in just a couple of months. With that being the case, I do have concerns about sustainability, but there’s nothing on the charts right now that suggests we are going to change the trajectory of this market anytime soon. With this, all you can do is look for buying opportunities in this market at the moment.

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