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

S&P 500 Technical Analysis

You can see the S&P 500 has gapped higher to kick off the trading week, only to kind of stagnate, at least as we head into New York. This will be interesting to see how this carries through, but I do think given enough time, markets do come back into the picture to find buyers. This has been the pattern for some in this market, as well as most other stock markets.

After all, this is a market that is very strong. And I think ultimately, we will find quite a bit of interest in trying to pick up cheap contracts after all. This is a situation where the central banks, particularly the Federal Reserve, are likely to cut rates and therefore people are throwing money into assets like stocks.

The S&P 500 of course is going to be one of the biggest beneficiaries of that. So, at this point in time, I think you’ve got a situation where short term pullbacks again attract a lot of attention, especially near the 5,200 level, which is an area that has been both resistance and support. So longer term, we do go higher. If we can break above the 5,300 level, then it allows the S&P 500 to continue climbing, eventually getting to the 5,500 level.

For what it is worth, we are kicking off Q2 on Monday, so one would think there is a lot of money that will have to be reallocated, and therefore I would suspect it is likely that we have a generally positive week. However, you should also remember that this Friday is Non-Farm Payroll day, so this could cause a bit of noise as well.

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