S&P 500 Weekly Price Forecast – S&P 500 on the precipice of breaking out

The S&P 500 rallied significantly during the courts the week, especially after a strong jobs number. The 2900 level is of course an area that has continued to be important for traders, so the question is whether or not we can break above there, and more importantly stay above it. If we can, then it opens the door to the 3000 handle. However, it’s very likely that we are going to face significant pressure in this area for some type of pullback.

S&P 500 Video 08.04.19

If we do get that pullback, I don’t necessarily think that the market is going to break down significantly and it would not surprise me if we get this drop and then find buyers underneath to pick up a bit of value. The 2790 level continues to offer a bit of a “floor from what I see, and therefore I don’t have any interest in shorting this from a longer-term standpoint until we blow through that support level. If we can break above the highs bank in fall of last year, then the market will test the 3000, and then perhaps even go much higher than that.

There are a lot of moving pieces right now, and to say the least we are a bit overextended. This is why I fully anticipate some type of pullback going forward. However, if we do get that break out you simply have to follow the market. Expect a lot of choppiness, but quite frankly value hunting is probably the best way for longer-term traders to be approaching the S&P 500.

Please let us know what you think in the comments below