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S&P 500 Price Forecast – S&P 500 Sees a Bit of Profit Taking

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S&P 500 Technical Analysis

It looks as if the S&P 500 is pulling back just a bit to show signs of hesitation or at least profit taking, and that makes quite a bit of sense. We have shot straight up in the air for the last several days, and therefore sooner or later, you have to have a little bit of a pullback in order to entice more buyers.

There could be simple profit taking as well. And at this point in time, I think you need to be looking for some type of value to reenter the market. You may find that closer to the 5100 level or perhaps even the 50 day EMA. I don’t know that we fall that far, just that it would be an ideal area to find a bit of a balance that you can take advantage of.

The alternative scenario is that we break above the 5200 level and just simply go to 5300, which was basically where we peaked out at over the last couple of months. This is the market that you cannot be short. After all, Wall Street will find a reason to push stocks. That’s literally what their job is.

Keep in mind that this is not an index of 500 companies, more or less, it’s an index of about five at any given moment. So as long as all the big companies are doing okay, this index will continue to rise because it is not equally weighted. Underneath, we have the 5,000 level that I think extends down to 4,925 as a major floor in the market. So at this point, I’m looking for a pullback and a bounce in the market to join.

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

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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