S&P 500 Price Forecast – stock markets continue to push higherThe S&P 500 continues to find buyers on dips, as we seem to be looking at the 2935 level as a short term support level. We did try to break out during the day but sold off rather drastically as we may have gotten a bit overbought.
The S&P 500 has been grinding higher over the last couple of sessions, and of course has been in a long-term uptrend. I believe that we continue to buy dips, but as we are getting relatively close to the jobs number, it makes sense that we will probably see the stock market quiet down for a few days. I think at this point it’s obviously a “buy on the dips” type of situation, as we continue to find value hunters entering this market. I believe that the 2920 level underneath will continue to be supportive, I also recognize that the 2900 level will be a massive support level as well. In fact, it’s not until we break down below the 2900 level that I would even remotely consider selling this market as it has proven itself to be so resilient over time.
If we can break above the highs, I think it’s only a matter time before we go reaching towards the 2950 handle, which is the recent highs. Chlorine that allows the market to go looking towards the 3000 level which is my longer-term target. At this point, I think that too many market participants are looking to test that level for it not to at least be attempted over the longer-term. I expect a lot of noise, but quite frankly that is how we find opportunity in this market. I would not expect explosive moves between now and the jobs number though.