S&P 500 Weekly Price Forecast – Continue to Undulate Based Upon Yields

The S&P 500 has formed a relatively neutral candlestick for the week, as we have gone back and forth quite a bit. This makes a certain amount of sense, due to the fact that we have seen quite a bit of noise in the 10 year yield, as the bond markets have been wrecked as of late. If yields continue to rise, that causes a lot of concerns when it comes to stocks but ultimately the Federal Reserve is looking to let inflation run higher, so even if bond yields do continue to rise one would have to think that sooner or later there will be a bit for stocks. In the short term, there is probably a lot of trepidation, especially as the 4000 level is such a major round figure.

S&P 500 Video 22.03.21

If and when we break above the 4000 handle, I would anticipate that the market may go looking for another 100 points, but ultimately, I think what we are seeing here is a situation where people are going to be looking towards the bond yields to make a decision in the short term, but eventually somebody somewhere will do something to push this above the 4000 handle. To the downside I believe that the 3800 level is rather supportive so somewhere in that area I would anticipate buyers the jump back in. Even if we get some type of correction, I believe that it will ultimately offer a buying opportunity as per usual. Longer-term, I believe that we will reach towards 4250.

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