S&P 500 Price Forecast – S&P 500 Continues to Wait For CPI?

S&P 500 Technical Analysis

You can see we did pull back just a bit during the early hours on Tuesday, but really at this point, it looks very much like a market that is just trying to hang in around the 5200 level. The 5200 level, of course, is a large round number that has previously been resistance and now ends up being support, at least in the last two days. The question now is whether or not we will turn around and find buyers. Ultimately, I think a lot of what we will see here is a market that is waiting for CPI numbers on Wednesday, and that could have a huge effect on where we go next.

If we do breakdown below 5200, then 5100 and the 50-day EMA both I think offer plenty of support. In general, this is a market that given enough time I do think goes higher, but right now we have to work off some of the excess froth. After all, market participants got a little overdone. So with that being the case, I think if we can turn around and take out the recent high, then we’ll go looking to the 5,500 level, but that’s going to take some work.

We’ll have to get through the CPI numbers first. Quite frankly, it wouldn’t surprise me if we went sideways for a while. Quite frankly, it could be a good shot at perhaps just kind of bringing more people into the fold. At the end of the day, I think a lot of people are waiting for a bit of value to get involved.

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