S&P 500 Forecast Today- 10/07: Seeking Higher Levels (Chart)
Date
7/10/2024 4:56:36 AM
(MENAFN- Daily Forex)
It's hard not to notice that the S&P 500 continue to be very bullish. That being said, we are a little overextended at this point, and a little bit of a pullback makes quite a bit of sense. After all, the 5600 level has repelled buyers, but that doesn't necessarily mean that we need to pull back significantly. In fact, I'd be a bit surprised if we do but it's also possible that we could drop all the way down to the 5450 level.
Underneath, we have the 50-Day EMA rising near the 5400 level, and that's an area that I think a lot of people would be cognizant of. With that being the case, I am bullish of this market and I would love to see some type of pullback in order to take advantage of value. All things being equal, this is a market that I think continues to go higher, due to the fact that Wall Street is continuing to run on momentum more than anything else. After all, we have a huge artificial intelligence bubble going on, and it seems like no matter what happens, Wall Street starts talking about artificial intelligence as being a buying opportunity any time it moves.
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S&P 500
The S&P 500 continues to be a momentum ETF based on a few stocks, as we continue to see a lot of money flow into just a handful of artificial intelligence companies, and of course energy is now starting to pick up a little bit, so we could see energy companies attract a certain amount of attention as well. Remember, the S&P 500 is really something akin to the“S&P 7”, as the markets will continue to see just a handful of companies move the entire index. I have no interest in shorting this market, because quite frankly that's been a fool's errand for months now. I understand that the economy doesn't necessarily warrant the S&P 500 going straight up in the air, but the S&P 500 has had nothing to do with the United States economy for well over a decade.
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