S&P 500 Price Forecast – Wall Street Somewhat Nonchalant

S&P 500 Technical Analysis

The Thursday session has been quiet in the S&P 500, just as we had seen on Wednesday, despite the fact that PPI numbers came out just a touch hotter than anticipated. Because of this, I think you’ve got a situation where the market is going to continue to look at this through the prism of buying on dips, trying to find value, etc, etc. 5200 is almost assured to be the target right now. The question is, do we pull back first and then get there, or do we just go straight up in the air?

I don’t necessarily like the idea of getting too big right away, but I do recognize that you clearly cannot short this market. Remember, this is all about the Federal Reserve, and of course, whether or not they are going to keep monetary policy loose. With PPI coming in a tenth of a percent hotter than anticipated, I don’t know that that moves the bar much.

Ultimately, this is a market that every time it drops, you need to be thinking about how can I get involved? After all, that’s been the game here for a while and I just don’t see how that changes. Once we break 5200 then that probably brings the floor up to about 5080 or so, but right now that is something that we’re still waiting to see. Ultimately, I like the idea of finding value if and when it appears, and I also recognize that this is a perfect 45 degree angle that you just simply cannot fight against. With that being the case, I think a pullback, even if it was somewhat drastic, would more likely than not be welcomed by traders as they would look at it through the prism of finding some type of value.

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