S&P 500 Price Forecast – S&P 500 Continues to See Buyers

S&P 500 Technical Analysis

The S&P 500 pulled back a bit during the early hours in Friday as the jobs numbers came out hotter than anticipated. That being said, this is a market that is built on momentum and just a handful of stocks. So, because of this, I think it is probably only a matter of time before we turn around. And we are in fact already starting to see traders come in and try to pick this market back up. Underneath, I see the 5,300 level as an area that is going to continue to be crucial and an area that I think a lot of people will be paying attention to it.

There were a lot of options traded in this general vicinity. And with that being the case, I think it makes a lot of sense that we continue to pay close attention to it. If we were to break down below 5,300, it could be pretty negative. But even in that environment, I think there are plenty of buyers down to at least the 50 day EMA, which is closer to 5,200. So with that, I remain bullish. I don’t buy it, but it’s a momentum thing and it’s got nothing to do with the economy.

Inflation is going to get worse because we are still hiring. Rate cuts probably don’t come, but you have to keep in mind, this is not an equal weighted index. So therefore, it only takes a few stocks to really push this market higher. You just have to ask what Nvidia is doing at this point. So it is what it is until it’s not. And then when it’s not, we’ll get a huge crash or correction. It’s just the way the bubbles are blown up on Wall Street. As things stand right now, you’re just looking for a pullback and a bounce to get involved. I just don’t see how you can short this market.

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