S&P 500 Price Forecast – S&P 500 Continues to Stagnate

The S&P 500 has initially tried to rally during the day on Friday but gave back early gains as the market appears to have nowhere to be. I still believe that the market is in an uptrend and that we will more than likely continue to go higher, but at the end of the day it looks like there is no real interest in putting money to work heading into the weekend. That does make a certain amount of sense, because quite frankly there is a lot of risk being carried over the weekend.

S&P 500 Video 14.06.21

Traders are starting to think about the idea of inflation and what that could mean. So far, it appears that most equities traders believe the Federal Reserve when they talk about inflation being “transitory”, and therefore I do not think that they see a lot of trouble ahead. Whether that is true or not is a completely different conversation, but it certainly looks like the market is trying to ignore it and go higher. If it can, then I believe that the market will eventually go looking towards the 4400 level above, but it might take a while to get there.

Underneath, the 4200 level continues offer support and most certainly the 50 day EMA word underneath there. After that, we then have the massive support level at the 4000 level which is not only a large, round, psychologically significant figure but it is also the scene of a gap that a lot of traders will be paying close attention to. Regardless, we are in an uptrend and that is probably the most important thing to pay attention to above all else.

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