S&P 500 Price Forecast – Wall Street Waits For Momentum

S&P 500 Technical Analysis

Taking a look at the S&P 500 you can see that the market has been going back and forth over the last several weeks. But at this point, I think that the 4900 level underneath is an area where we would see support with the 50 day EMA reaching that area as well. Ultimately, this is a market that desperately needs some type of pullback and essentially traders are playing a game to see when that happens without trying to get hurt by being overextended.

All things being equal, I think what we’ve got is a situation where value hunters will continue to come back. But keep in mind, after the bell we have Nvidia earnings, that of course has everybody on Wall Street twiddling their thumbs and guesstimating what could happen next. But at the end of the day, the S&P 500 is an ETF of about five companies, maybe seven, and I think as long as all of the big players continue to move higher, so does the S&P 500. When you look at it from a longer term perspective, it’s not a huge surprise to see that we’re going back and forth around the 5000 level. I mean, that’s a pretty big round figure that attracts a lot of attention. Another thing to keep in mind is that since Halloween of last year, we’re up 23.5% and that’s not normal.

So, a correction is actually needed. Whether or not we get it, we’ll have to wait and see how deep it is, we’ll have to wait and see. But 4,800 to the 50 day EMA, that would be ideal. I don’t know, we will either do that or kill time and work sideways. If we do break above the 5,050 level, that opens up a move to 5,100, followed rather quickly by 5,200 would be my assumption.

Pay attention to interest rates in America. If they start to plummet, that could help stocks, unless of course, it has something to do with really bad economic news, because eventually bad news does become bad news again.

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