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

S&P 500 Technical Analysis

The S&P 500 has pulled back a bit after initially gapping higher on Monday, and now it looks like we are getting close to some type of pullback that you can jump into. Ultimately, this is a market that I think continues to see plenty of upward pressure, regardless of what happens, and of course, the S&P 500, like most other indices around the world right now, are being driven by a handful of stocks that everybody owns. So, in other words, all of the same companies are driving everything higher as they have been the whole time.

It’s not a very widespread rally. But that might be the new normal. You always talk about how the underlying breadth of the stock market is something that you have to pay close attention to, but maybe not anymore. It seems like a new paradigm. Unfortunately, anytime there’s a new paradigm, you are getting close to the end it seems.

Either way, I look at this as a market that you want to buy dips in due to the fact that obviously we’re in a very strong uptrend. Furthermore, everybody is still banking on the Federal Reserve to cut interest rates later this year, so it’s just all systems go and keep powering higher is what I see. At this point, the 5,000 level I think is your floor in the market, but we do have the 50 day EMA underneath at the 4,913 level and rising, which could also offer quite a bit of support as well.

Where the S&P 500 ends up by the time it runs out of momentum, nobody seems to know because everybody’s target keeps being pushed higher and higher. What does this mean? Well, we are in a bit of a mania, but it doesn’t look like we’re that late into it yet. Because of this you still have to hold your nose and buy every dip going forward regardless of how overdone this market looks.

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