S&P 500 Price Forecast – Quiet Day on Wall Street

The S&P 500 went back and forth during the course of the trading session on Thursday as we continue to see a bit of a hesitation when it comes to the next move higher. All things been equal, we have just formed a bullish flag and it does suggest that we are going to go higher over the longer term. The 4800 level would be a target in the intermediate term that I am aiming for, but when you take the “measured move” of the bullish flag, then I think we probably go looking closer to the $5000 level.

S&P 500 Video 19.11.21

If we were to break down from here, the 4600 level should continue to offer plenty of support, especially as the 50 day EMA is starting to reach towards it. Because of this, it is only a matter of time before buyers come back in and try to pick this thing up. All the way higher, it has been rather choppy, so I do not necessarily expect to see an explosive move in the short term.

As far shorting is concerned, I never do so due to the fact that the central bank in the United States does so much manipulation either through bond purchases or jawboning, so therefore it is not even a question. However, if we break down below the 50 day EMA, I might be tempted to buy short-term put, but that is about as aggressive as I would get. The so-called “Santa Claus rally” could of course come into play as well, so keep an eye on that going forward.

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