S&P 500 Weekly Price Forecast – S&P 500 Finds Buyers on The Dips

Christopher Lewis
Published: May 3, 2024, 16:48 GMT+00:00

The S&P 500 fell rather significantly during the course of the trading week, but by the time Thursday and Friday came around, we started to see buyers come back in.

In this article:

S&P 500 Weekly Technical Analysis

You can see that the 5000 level has held firm as support in the S&P 500 and I think that we have a situation where traders will continue to buy this dip and try to get long of the market perhaps pushing it to the 5300 level. The jobs number on Friday of course ended up being rather below the expected and that of course has people jumping in on the idea that perhaps the Federal Reserve will do something as far as loosening monetary policy sooner rather than later. If that’s going to be the case, then stocks do fairly well. Short-term pullbacks I think continue to offer support and now 5,000 is going to be not only technical but probably psychological support as well.

If we can break above the 5300 level, then the market could go looking to the 5500 level. In general, I think this is a situation where you just look for value and you take advantage of it. Longer term, we are still very much in a massive uptrend and that has not changed. The candlestick for the week ended up forming a bit of a hammer and that of course is a good look as well.

So, I remain bullish of the S&P 500 and recognize that you can’t short stocks, at least not the index itself. After all, the index is not equal weighted, so you have to be very cautious about putting big bets in this market against the overall uptrend. After all, the traders on Wall Street are very much momentum driven, and therefore you need to be cognizant of the latest narrative.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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