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S&P 500 Price Forecast – S&P 500 Pulls Back in Early Friday Trading

By:
Christopher Lewis
Published: Apr 12, 2024, 13:42 GMT+00:00

The banks were somewhat disappointed in the early hours as far as earnings are concerned, and we have seen the S&P 500 show this fact quite clearly on the charts.

In this article:

S&P 500 Technical Analysis

The S&P 500 pulled back just a bit during the trading session on Friday, as we continue to see a lot of noisy behavior. All things being equal, this is a market that I think continues to see a lot of noise and chop.

But I also think that we have a very real likelihood of seeing this market eventually go higher. Keep in mind that it was the beginning of earnings on Friday, and the banks didn’t fare so well. And I think that’s part of what we’re seeing here. Nonetheless, the 5100 level below offers a significant amount of support, right along with the 50 day EMA.

So you got to keep that in the back of your head. If you’re going to be trading this market. Buying short term dips makes quite a bit of sense. And I think that’s just the way we continue to trade all the way down to at least 5100. A little bit of sideways consolidation I think is good for working off some of this excess froth.

And of course, you have to keep in mind that no matter what happens in the interest rate markets, it seems like stock traders are willing to jump in and pick up the market anyway. So on the occasional knee jerk reaction to the downside, it ends up being a reasonable buying opportunity from the last several examples. So, keep in mind this is a bit of a one way trade as this market is mainly driven by the massive amount of momentum that is such a massive factor in the way it behaves.

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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