S&P 500 Price Forecast – boost after the jobs report continues recovery
The S&P 500 rallied a bit after initially drifting lower during the day on Friday, after the jobs number came out. It looks as if we are going to attack the 2750 handle, and perhaps go looking towards the 2800 level. Short-term pullback should be buying opportunities, and I believe that this is a particularly bullish sign as this is the same day that there are trade tariffs being announced. Because of this, I think that the S&P 500 has shown that it is going to go higher given enough time, and that we should continue to look at these dips as value, at least in the short term.
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I believe that the 2700 level underneath is a bit of a “floor” in the market, so we were to turn around a breakdown below there, it’s likely that the market would unwind rather drastically. Under these circumstances, I would expect it to accompany some type of shocking news, perhaps on the trade war front, but I think the market has already spoken as to what it wants to do. Because of this, I believe in buying short-term dips, as well as breakouts to the upside. Longer-term, I think the 2800 level will be the target, but it will also be very difficult to break above. If we do, that leads to the 3000 level, which had been my longer-term target for quite some time, before the trade war situation.