S&P 500 Price Forecast – End of Quarter Rebalancing in Focus

The S&P 500 fell a bit during the trading session on Tuesday as we continue to see a lot of lackluster performance. Rising yields in the United States will continue to be a bit of an issue, so that is most certainly something worth paying attention to. At this point in time, I do believe that we will see a lot of noise just below the 4000 handle continue, as we are in the midst of rebalancing. All things been equal, I think it is only a matter of time before we roll over a bit, but I also anticipate seeing quite a bit of buying pressure underneath.

S&P 500 Video 31.03.21

The 3900 level should be supportive, and most certainly the 50 day EMA will as well, as you can see that it has been nice dynamic support over the last several months. After all, a lot of people are out there counting on the Federal Reserve to bail out Wall Street, because quite frankly that is what the Federal Reserve does. If we get some type of massive selloff, it will only be a matter of time before the step in to calm the markets down one way or another. I believe at this point we are simply looking for dips to buy into, and that would continue to be the play going forward. It will probably take a certain amount of momentum to finally break above the 4000 handle above, as it will obviously cause a lot of headlines noise. I do think it happens, although it may take several attempts.

For a look at all of today’s economic events, check out our economic calendar.