SP 500 Price Forecast – Stock Markets Pull Back with Rising Yields

The S&P 500 fell a bit during the trading session during Thursday as we continue to see a lot of noise around the 3900 level. The 10 year note has caused a significant amount of noise as well, as the yields crossed above the 1.30% level during the day, causing big money managers to rebalance portfolios. Nonetheless, the market has been a bit overdone as of late so a pullback would not be completely out of the question. If we do get a pull back from there, then it is likely that we could go down to the 3850 handle, possibly even the 3800 level.

The longer-term aspect of my analysis still suggests that we are probably going to go looking towards the 4000 handle, but it is going to take a certain amount of time before we get there. I think pulling back and building up momentum is probably a good thing, because quite frankly this is a market that has gotten ahead of itself.

Currently, at the very least we will probably grind sideways and that would make a certain amount of sense as well, because if nothing else we could at least try to “kill time” before getting impulsive again. The 50 day EMA sits just below the 3800 level, so I think that also could come into play as well. All things been equal, I do think that we go higher but I think that a pullback is what you should be looking for, as it could give you a little bit of value in a market that is a bit overdone. At this point, I have absolutely no interest in shorting this market.