S&P 500 Price Forecast – S&P 500 sluggish to open week
Although we have had decent earnings coming out of some banks, the reality is that sluggish trading is probably what we are going to see. The 2800 level of course offers a significant amount of psychological interest, and I believe that if the market were to continue the overall attitude that we see right now, I think we could go looking for value hunters closer to the 2775 level. If we can break above 2810, then I think the market can go higher, but right now I think we need to build up momentum so that we can continue to go higher. I think it is going to be difficult to get overly excited about the market right now, at least not until we get a nice impulsive day, something that we have yet to see you.
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If we break down below the 2770 handle, then I think we reset back to the 2740 level, but right now I think it’s more likely that we consolidate in a short-term range, so if you have the ability to trade short-term charts in a range bound fashion, this might be a good market for you. I suspect that eventually the value hunters will step in, that’s typically what they do but that could be a situation for late in the day. If we do break down, it’s just a matter being patient enough to wait for more demand to enter the market to take advantage of that value being offered.