S&P 500 Price Forecast – S&P 500 Choppy

The S&P 500 went back and forth during the course of the trading session on Monday as we are simply killing time above the 4200 level. Quite frankly, if we do pull back from here it is likely that we will see buyers jump into this market, due to the fact that the trend has been so strong and of course the bond yields continue to drop. All things been equal, we are above the 4200 level which of course is an area that should be paid close attention to due to the fact that it is a big figure.

S&P 500 Video 11.05.21

Even if we did break down below there it is likely that the market would be paying close attention to the 4100 level. The 4100 level has been supportive more than once, and now it looks like the 50 day EMA is trying to reach towards there. Underneath that level opens up the possibility of a move down to the 4000 level which I think is even more supportive than the previous two areas. It is not until we break down below the 4000 level that I would be concerned about the overall attitude of the market, but at this point in time it seems very unlikely that is going to happen.

To the upside, the market is probably going to target the 4400 level, as the market tends to move in 200 point increments. Furthermore, I think that the break of the 4200 level is a good sign and certainly it is only a matter of time before value hunters will come back into the market and pick up dips.

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