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

By:
Christopher Lewis
Published: Apr 25, 2024, 13:32 GMT+00:00

The S&P 500 market has shown itself to be supported underneath, but at this point in time, the markets will continue to see a lot of questions asked of the momentum.

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S&P 500 Technical Analysis

It’s a pretty quiet early session here on Thursday as traders are trying to find some type of directionality. That being said, we recently fell roughly 6 to 7% and it’s not uncommon to build a little bit of a base before we continue the overall trend or break down, and I think that’s where we’re at right now.

We are simply just trying to determine which direction we go next. If we can clear the 5100 level, then I think we continue the longer term uptrend and go much higher. If we break down below the 4900 level, that would be a bad sign and could send the S&P 500 down to the 200 day EMA underneath, which is closer to the 4750 level.

Ultimately, this is a market that I think still has plenty of positivity left in it. But right now, as we are in the midst of earnings season, we are paying close attention to catalysts in the forms of earnings, etc. I would expect choppy behavior. I also would expect the occasional buy on the dip opportunity, at least until we break down below that recent low.

If we do, then it simply means that there’s a deeper correction. The underlying numbers for the indices in America don’t necessarily show massive bullishness, but they aren’t necessarily falling apart either. And with that being the case, one would have to assume that all it takes is a good catalyst. There are a lot of concerns about the Federal Reserve not cutting this year, but I think we have somewhat priced that in with this recent sell off.

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

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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