S&P 500 Price Forecast – S&P 500 Continues to Rally After Jobs Number

The S&P 500 has shown itself to be bullish again on Friday, now that the jobs number is out and was better than anticipated. Because of this, it looks like we are free to go looking towards the 4400 level above, which of course is a round number, but more importantly it also has a history behind it, as the S&P 500 tends to move in 200 point increments.

S&P 500 Video 05.07.21

To the downside, the 200 day EMA is reaching towards the 4200 level, and of course we also have a significant uptrend line. If we were to break through all of that, then it is likely that we could go looking towards the 4000 handle, where we have a little bit of a gap. At that level, I would anticipate that there should be a “floor in the market” that supplies plenty of buying pressure. Furthermore, we have the 200 day EMA underneath there trying to reach towards that level, so I think it ties together quite nicely.

It is not until we break down below the 4000 level that I would consider buying puts, but I will not short this market due to the fact that the Federal Reserve is far too manipulative of it. That being said, the market is likely to see the Federal Reserve step in and talk things up if we do break down, that is why I stick with the options market in that scenario. At this point in time though, there is nothing on this chart that suggests that we are going to turn lower, so I believe that the bullish pressure continues.

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