S&P 500 Price Forecast – Wall Street Continues to Grind Back And Forth

S&P 500 Technical Analysis

The S&P 500 has consolidated over the last several sessions, with Monday being more of the same. The 5200 level is an area that I think will continue to be important, mainly due to the fact that it previously had a significant amount of resistance.

With this market memory coming into the picture and the fact that the last couple of days consolidated, this is a market that I think may be taking a little bit of a breather at the moment. That being said, if the market does in fact see a pullback, I think that just offers a nice buying opportunity. The 50 day EMA sits near the 5100 level followed by the 5,000 level. The 5,000 level, of course, is a large round number that a lot of people would pay attention to, and therefore, I think that’s probably the short-term floor in the market. More likely than not, we are going to see this market just go sideways as we try to work off some of that excess froth from the shot straight up in the era of the last several months.

If we were to break above the 5300 level, then we could see this market go looking to the 5500 level. All things being equal, this is a market that I want to stay positive in. I do not want to short this market whatsoever, and I look at dips as potential buying opportunities. The market will be paying attention to the earnings season soon, as banks start to report at the end of the week, the traditional start to the earnings season on Wall Street.

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