S&P 500 Price Forecast – the S&P 500 continues to show strength
The S&P 500 rallied slightly during the trading session on Wednesday, breaking above the 2790 handle, and then reaching towards the 2800 level. I think that the market should continue to grind to the upside, and as you can see on the chart I have the 50 hour SMA. That is a moving average that continues to be of importance, and therefore I think we will continue to see technicians pay attention to it. I think short-term pullbacks offer value regardless, and once we get the FOMC Statement of the way, it’s likely that we will see a resumption of the overall trend. If we can break above the 2800 level, the market should continue to go higher after that, and it should bring in fresh money.
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The market participants continue to be a bit skittish though, so I look at pullbacks as value and would actually welcome one. I think that the 2775 level underneath continues to be a short-term floor, but it is much more supportive at the 2750 level. The attitude of participants continues to be very bullish, and I think that the momentum should continue, given enough time. I like the idea of building up a larger position for the eventual breakout above the 2800 level. Once we get above there, the market should pick up quite a bit of momentum.