S&P 500 Price Forecast – S&P 500 Looking For Floor

S&P 500 Technical Analysis

The S&P 500 is just simply killing time ahead of the PPI numbers as we have no real momentum one way or the other. After the sell off during the trading session on Wednesday, it does look like we’re getting a little bit of stability, but quite frankly, I think it’s just the market being in a bit of a holding pattern.

Underneath we have the 50 day EMA, which of course is an indicator that a lot of people pay close attention to, and it could offer some support. Below there, then we have the 5,000 level, which I think ultimately ends up being a hard floor in the market. Given enough time, we will have to make a decision, but we’ve been very positive for a long time. So it’s not a huge surprise to suspect that perhaps this is a market that needs to consolidate for a while.

Right now, we could be in the midst of carving out that zone. Keep in mind that traders are starting to have to rethink what the Federal Reserve may or may not do as far as interest rates are concerned. As one time several months ago, we were actually trying to price in seven cuts by the end of the year. We’re now talking about two. So with that being the case, the stock market of course will behave accordingly, and expect a lot of choppy sideways action more than anything else. And of course, we have the ECB meeting during the day which could cause a little bit of noise in the dollar, which might be felt over here as well.

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