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

Christopher Lewis
Updated: Mar 5, 2024, 13:24 UTC

The S&P 500 continues to see a lot of “buying on the dips” during the session on Tuesday, as we have seen a certain amount of value chasing yet again.

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S&P 500 Technical Analysis

The S&P 500 has been very choppy and noisy over the last couple of days, as we are most certainly looking for some type of reason to pull back in order to offer value. After all, this is a market that has gone straight up in the air for a while, and I think we’ve got a real shot at continuing the uptrend, but we may have to pull back enough to find value underneath.

The 5100 level is an area that I would expect to see a lot of buyers at, and then after that you’ve probably got the 5000 level, which I think also, for no other reason than psychology, probably comes into the picture to offer plenty of support. In other words, there’s no real way to short this market as the overall uptrend is so firmly ensconced and has been so reliable as traders chase performance in which he is rapidly becoming one of the strongest years that I can think of recently.

The 50-day EMA is likely to continue to be supportive, and as it runs towards the 5,000 level, that almost certainly will offer a bit of an uplifting force as well. Either way, keep in mind that the S&P 500 is only a few stocks more than anything else. It is not an equal weighted index, so you have to keep that in mind.

All things being equal, traders still believe that the Federal Reserve is going to continue to jump into the picture and perhaps cut rates, and cutting rates does have people buying stocks. It’s at a perfect 45 degree angle as far as the trend is concerned, so this is what a very strong uptrend looks like, and there’s no way to fight it. Even if we broke down below 5,000, I would not be willing to sell this market anytime soon, I do recognize that it would be a bit of a red flag.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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