S&P 500 Price Forecast – S&P 500 Hovers in Basing Pattern
The S&P 500 has rallied a bit during the course of the trading session on Monday as we continue to see a lot of noisy behavior right around the 50 day EMA. It is also worth noting that the 4550 level seems to be offering support, so I do think that it is probably only a matter of time before we form a basing pattern that buyers will probably try to take advantage of. That being said, there is also an uptrend line just below that could come into the picture as well. The uptrend line of course is important in and of itself, and then of course we have the 50 day EMA underneath has crossed the crucial 4250 level.
S&P 500 Video 07.12.21
The order to 50 level is what I considered to be the “bottom of the uptrend”, which I believe at this point in time it is likely that we would see plenty of buyers coming into pick up value. Furthermore, we have the “Santa Claus rally”, which of course is when people are trying to catch up to their benchmarks that they may not have been able to keep up with. All things been equal, the market is still very much in an uptrend, so it is very likely that we continue to see plenty of buyers try to take advantage of value anyway. With this, the market is more than likely going to find reasons to go higher, perhaps due to the fact that people are starting to figure out that may be the Federal Reserve will not be able to tighten as much as originally thought.
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