S&P 500 Price Forecast – S&P 500 Forming Bullish Flag
The S&P 500 has rallied a bit during the trading session on Friday, reaching towards the 4650 handle. More importantly, we are forming a bit of a bullish flag, as the market looks as if it is ready to go much higher. In fact, based upon the “measured move” of this chart and flag, we could be looking at a run towards 4900. Regardless, the S&P 500 is something that you cannot short, because quite frankly it is only a matter of time before either a story or narrative gets people buying again. After all, Wall Street is very good at coming up with a reason to continue buying, and one would have to think this time will be any different. Furthermore, we also have a very loose Federal Reserve, despite the fact that they are starting to taper bond purchases.
S&P 500 Video 15.11.21
Underneath, the 4600 level should offer support, but even if we do break down below there, we have the 50 day EMA coming into the picture just above the 4500 level, which of course has a certain amount of psychological interest in it as well. The market has been bullish for quite some time, and then likely will continue to find plenty of value hunters. Remember, as we get close to the end of the year, a lot of money managers are going to have to chase trades and performance due to the fact that the clients will be getting their returns for the year soon, and mentors as will do everything they can to pad the performances in order to make it look as if they have had a reasonable year.
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