S&P 500 Price Forecast – Wall Street Continues to Show Strength

S&P 500 Technical Analysis

The S&P 500 has rallied early during the trading session on Tuesday as we continue to just drift a little higher. This does make a certain amount of sense considering there is a significant lack of Economic announcements this week. Therefore, we have to look at this through the prism of a market that is bullish, has taken a slight pullback and now will either go sideways or continue to go higher. I don’t have any interest in shorting the S&P 500, it’s far too strong to do that. And I do think that it’s probably only a matter of time before we break out to the upside. The next target would be the psychologically important 5300 level, but I think we probably go as high as 5500 before it’s all said and done.

At this point, I look at the 50 day EMA underneath as a major important support level, followed very quickly by the 5000 level. This of course assumes that we get anywhere near there, which quite frankly, there is nothing that has suggested that we are going to see anything like that. I would love to see the S&P 500 pull back a couple of hundred points, but right now, it just doesn’t look like it’s interested.

As long as the Federal Reserve is likely to cut rates later this year, it does make a certain amount of sense that the S&P 500 continues to drift higher. I do think this week is possibly going to be somewhat lackluster, but it doesn’t look like it’s going to be very negative. All things being equal, this is a market that I think continues to see a lot of buyers every time it does pull back, mainly based on value hunting and people trying to chase this rally higher.

For a look at all of today’s economic events, check out our economic calendar.