S&P 500 Price Forecast – Stock markets pulled back near the highs

The S&P 500 pulled back a bit during the trading session on Tuesday, which is not much of a surprise considering that we were hanging around the 2900 level. Ultimately, it’s very likely that this market will find buyers on dips, as they represent value in what has been a very strong uptrend. There are a lot of pundits and analysts out there that think we may get a bit of a “melt up” and that of course would be a move that will break out to a fresh, new highs. In the short term though, it would not surprise me at all to see a little bit of a pullback, as it could offer value the people would be willing to take advantage of.

S&P 500 Video 10.04.19

If that’s going to be the case, I like the idea of finding value on pullbacks, or buying a break above the recent highs at the 2941 range. I don’t have any interest in shorting this market, at least not until we break significantly below the 2790 handle, something that doesn’t look very likely to happen at this point. If it did, that could be quite a bit of a shock to the system and it could kick off something rather large and ugly. That being the case, I remain bullish but I also look for opportunities that are cheaper rather than expensive like we have currently. Keep your position size small as well, there does seem to be a lot of volatility if these types of levels.

Please let us know what you think in the comments below