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S&P 500 Price Forecast – Stock Markets Look to Test Support

The S&P 500 has initially tried to rally a bit during the trading session on Monday, but it looks like they are going to continue to see downward pressure. It should be noted that the 50-Day EMA sits underneath, and it’s likely that they will see quite a bit of support due to the technical indicator. All things being equal, this is a situation where short-term pullbacks will attract enough attention, and therefore I think that some type of bounce is probably something that people would get involved in.

At this point, you should also keep in mind that the stocks are having to deal with the idea of earnings announcements right now, and of course there are a ton of them. This can move the markets around, but I think that at this point the market still remains a bit of a “buy on the dips” type of situation, as it has been for some time. The 4400 level underneath could be a significant support level, and therefore I think you need to look at that through the prism of a potential buying opportunity. Alternatively, if they were to turn around and take out the high of the Friday candlestick, then it is likely that the S&P 500 will go look into the 4600 level, and then eventually the recent highs.

I do think that the S&P 500 continues to see a lot of support, but it’s also worth noting that the market probably needs to pull back just a bit in order to attract enough value hunters to get involved. The S&P 500 is designed to go higher over the longer term, because it is not an equal weighted index. In other words, this is going to come back down to a handful of the bigger stocks out there as to where they go over the longer term. It’s all the usual suspects, and of course has a lot to do with the idea of how technology stocks do eventually. Ultimately, they are in an uptrend, so that’s the most important thing to pay attention to at this point.

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

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