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

S&P 500 Technical Analysis

The S&P 500 has been somewhat noisy during the trading session but it’s worth noting that the largest options expiration happens on Friday in the history of Wall Street. So, with that being the case, it’s likely that we will see a lot of volatility on Friday and therefore it’s difficult to imagine a situation where we’re just straight up in the air.

I think short-term pullbacks offer value and I do think that the overall trend is most certainly strong. I just don’t see a situation where you want to start shorting the S&P 500. The 5300 level underneath is a significant area of market memory where we had seen a lot of resistance previously and now should see a lot of support in that same area.

I would love to see the S&P 500 drop towards that area, but whether or not it happens remains to be seen. The 5500 level above is of course an area that a lot of people will be paying attention to because it’s a large round psychologically significant figure. Clearing that opens up the possibility of a fairly big move, more of a buy and hold situation. I have no interest whatsoever, like I said, in shorting this market.

I do recognize that over the longer term, we should continue to go much, much higher. The Federal Reserve is still expected to cut rates once this year, whether or not that’s true, I don’t think matters at this point. I’m pretty sure Wall Street has just completely done its own thing and they will continue to push the same narratives.

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