S&P 500 Price Forecast – stock markets rally after strong jobs number

The S&P 500 pulled back slightly during the trading session on Friday, reaching down towards the 2700 level. However, we have bounced from there as the 200 day EMA looks to be offering support. This is a very positive turn of events and I think that the market is going to go looking towards the 2800 level above. With that being the case, I like the idea of buying short-term dips, but would not get married to a position. Expect to see a lot of twists and turns, showing extreme volatility.

S&P 500 Video 04.02.19

At this point, I suspect that value hunters will continue to flood to the market based upon the Federal Reserve, and of course the overall trend that we have seen as of late. The markets will of course continue to be noisy, but that’s nothing new with this type of choppiness and volatility. I think that headline risk including the US/China trade situation will probably dominate the market, and of course the government shutdown that could be happening in just a few short weeks. With the jobs number looking as strong as it has though, I do think that we will continue to look at pullbacks as potential buying opportunities. Ultimately, I believe that we are looking at a situation of “buy on the dips” going forward. I have no interest in shorting this market unless something drastically changes fundamentally. That being the case, cautious optimism remains the way I see the S&P 500.