- The S&P 500 has seen buying pressure during the month of May, as we are threatening the 6000 level above.
- That being said, we have also seen a lot of resistance in that area, so I think you’ve got a situation where to be very difficult to break above there.
- In the short term, I would anticipate a lot of back and forth noisy trading, and I also believe that if we do pull back, there will be plenty of value hunters out there willing to get involved index as well.
S&P 500 not built to fall for very long
Keep in mind that this is not equally weighted index, so it’s actually fairly unnatural for the S&P 500 to drop over the longer term. This is because a handful of stocks that almost everybody owns is the major measuring stick for where the index goes. A pullback from here could see plenty of support all the way down to the 5600 level, where the 50 Week EMA is at, and is rising. There is also a gap from about 3 weeks ago that’s near the 5700 level, so I think this is too much underneath to keep this market down for a significant amount of time.
Top Forex Brokers
That being said keep in mind that tariff news will be a major driver of where we go, and that of course is almost impossible predict. That being said, even after all this chaos, we have found the S&P 500 fairly close to the highs, so I think you’ve got a situation where traders will be looking to take advantage of cheap contracts anytime, they get the opportunity, and therefore I don’t have any interest in shorting this market going forward. If we were to break down below the 5600 level, that would obviously be horrific for the overall trend of buying and probably would almost certainly have something to do with further tariff noise. Ultimately though, I think we are just simply trying to work off a lot of the overbought conditions, and that might lead to a fairly quiet June.
Ready to trade our monthly forecast? Here’s a list of some of the best stocks brokers for you to check out.