S&P 500 Price Forecast – S&P 500 Recovers Early on Friday

S&P 500 Technical Analysis

It looks like we are trying to recover here a little bit during the trading session on Friday as traders recover from the massive sell off on Thursday. It’s worth noting that Monday is Memorial Day in the United States, so the market will, of course, be closed. But I think the Friday candlestick is going to tell us a lot.

When traders are willing to hang on to stocks through a three-day weekend, that’s generally a sign of positivity. And it’s also worth noting that perhaps the market overreacted to interest rates during the previous session because quite frankly, we didn’t get any information that was that new. Yes, unemployment claims ticked up just a touch, which I guess was somewhat new.

But really at the end of the day that will have the Federal Reserve cutting sooner rather than later despite the fact that PMI came out hotter than anticipated. Really, it doesn’t matter because what we’ve been shown multiple times is that Wall Street will come up with some type of narrative to push stocks higher and until that changes, you can’t fight it, as it looks to me like we are going to go higher and that we are going to perhaps consolidate around 5300.

But eventually I do think that we break above there and go much higher. We have been very bullish here over the last couple of weeks. So that sudden jolt, sudden profit taking certainly was needed. I still think of this as a buy on the dip market.

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