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

S&P 500 Technical Analysis

The S&P 500 was very noisy in the early hours on Thursday, as we have the consumer price index numbers surprising, the markets coming out much weaker than expected. Wall Street, of course, will cheer this because they believe that the Federal Reserve will come out and start to cut rates rather soon. And if that’s going to be the case, that typically helps equities. Now the question, of course is will there be some type of panic from the Federal Reserve. I don’t think that’s going to be the case.

So, this is a slow and steady type of move as far as I can see. Short term pullbacks I think offer value. And a lot of people are more willing than not to jump in and take advantage of cheap contracts. The 5600 level underneath is a large, round, psychologically significant figure, followed by the 5500 level. In general, there’s no way to short the US stock market because there’s only a handful of stocks that need to move in order to push these indices higher.

They are not equal weighted. And that, of course, means that they are colored by a handful of stocks like a Microsoft or Apple. Nvidia. As long as the big ones are down okay, the index will follow right along. I do believe eventually we go looking to the 5700 level. It may take some time, but I think we will get there over the next week or so.

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