S&P 500 Weekly Price Forecast – S&P 500 Continues to See Support

S&P 500 Weekly Technical Analysis

The S&P 500 has plunged for most of the week, but it does look like we are trying to find some type of support in this market. And therefore, you have to be very cautious about getting overly aggressive. At this point, I think you’ve got a scenario where it does remain buy on the dip, but the 5300 level continues to cause a lot of headaches.

With this being the case, I think the market participants will continue to see this as a scenario where every time we drop, there is a certain amount of value coming into the market. Keep in mind that the end of the month is generally when people start buying again. So that might be part of what we are seeing. Plus, you also have to keep in mind that the market is garbage. It’s not 500 stocks, it’s seven. So, you have to follow all of the same markets. It’s not equally weighted and 30% of the S&P 500 is now just six stocks. So, if all the usual suspects continue to come in and lift the marketplace, then it’s a good shot that you are going to see buyers come in and try to take advantage of the index itself.

If we break above the recent highs, then it’s likely that we will go looking to the 5,500 level. And I do think that’s your target eventually. But right now, it has to be one that you just look at. No way to sell, no way to short. 5,000 underneath is probably a massive floor in the market right now.

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