S&P 500 Price Forecast – Stock Markets Continue To Power HigherThe S&P 500 has rallied again during the trading session on Thursday, clearing the 3300 level finally. That being said, this is a market that still looks likely to go much higher.
The S&P 500 rallied a bit during the trading session on Thursday, breaking above the 3300 level during Wednesday trading. This is something that the market has been trying to do for some time, as we continue to grind to the upside. The keyword of course is going to be “grind”, as this hasn’t exactly been an explosive move.
As we are in the middle of earnings season and have seen the banks do quite well, it is a good sign for the S&P 500. Pullbacks at this point should be nice buying opportunity and therefore it’s very likely that value hunters will return every time we do get some type of pullback. The 3200 level underneath is essentially what I look at as the “floor in the market” right now, just as the 50 day EMA is getting ready to cross that area and of course we have formed a major hammer in that region as well.
That being said, I don’t have any interest in shorting this market, we are in far too strong of an uptrend. The Federal Reserve continues to liquefy the market with cheap money, and therefore as long as the Federal Reserve is willing to add more to its balance sheet, the S&P 500 probably continues to go higher as there really isn’t much of an alternative when it comes to interest rates. That being said, look for value, that’s the best thing that I can say, and it certainly has worked over the last 12 years. Investors have become extraordinarily complacent, but then again, the central bank hasn’t necessarily stepped on their fingers in the process either.