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S&P 500 Price Forecast – S&P 500 Continues to Stretch a Bit Higher

By:
Christopher Lewis
Updated: May 16, 2024, 15:27 GMT+00:00

The S&P 500 rallied slightly in the early hours of Thursday, as the market continues to see the upward momentum chasers out there push things higher.

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S&P 500 Technical Analysis

The S&P 500 is up slightly in the early hours on Thursday as we have cleared the 5300 level, an area that a lot of people have been talking about on the way up to this area. The question now is whether or not we have the momentum to continue to go higher, which I suspect we probably do. That being said, it is not necessarily a market that you’ll be looking to chase, it’s a market that you’ll be looking to find value in. Short-term pullbacks should offer plenty of support underneath, with mostly the usual suspects, such as every 50 points or even every 100 points.

The most obvious support level is down at the 50 day EMA and then the 5,000 level underneath there. And that being said, I don’t think it’s likely that we will see the market even drop that far. That’s why I think that if we break back down below the 5,300 level, it’s likely that we could go looking to the 5250 level and then possibly even 5,200.

Keep in mind that Wall Street is now starting to price in the idea that the Federal Reserve might start cutting rates later this year, which is, in all honesty, about the only thing that Wall Street cares about. So with that being the case, it’s very likely that we will see Wall Street continue to push that narrative. As far as selling is concerned, the only time you should be selling the S&P 500 is if you’re collecting some profit and shorting the market is all but impossible.

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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