S&P 500 Price Forecast – S&P 500 Drifts Towards 50 Day EMA Yet Again
The S&P 500 has fallen a bit during the course of the trading session on Friday, to reach down towards the 50 day EMA. The 4430 level has offered a bit of support as well, and the uptrend line underneath there will also come into the picture. With this being the case, it is likely that we will see plenty of buyers underneath to continue to pick this market up. If we were to break down below the 4400 level, then it is possible that we could go looking towards the lower levels, such as the 200 day EMA. At that point, I might be a buyer of puts, but at this point in time it is obvious that you cannot short this market as the Federal Reserve is so manipulative.
S&P 500 Video 20.09.21
To the upside, if we can break above the 4500 level then it is likely that we could go much higher, perhaps reaching towards the 4600 level. The market does tend to move in 200 point increments, so would not be a huge surprise. All things been equal, this is a market that continues to attract a lot of buyers based upon the idea of liquidity jumping into the market, so quite frankly there is no reason to think that stocks are going to change their tune anytime soon. Any pullback at this point in time is likely to be bought up as potential value, and with that being the case I think you have to look at this from a value proposition perspective more than anything else. We have been in a channel, and at the moment we continue to go in that same manner.
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