S&P 500 Price Forecast – S&P 500 Pulls Back From Crucial Barrier

The S&P 500 pulled back a bit during the trading session on Friday from the 4200 level, an area that of course has been difficult to deal with out of late, but ultimately this is a market that I do think eventually will find enough reason to go higher. If we can break above the 4200 level it would signify that the market is going to continue to go much higher. At that point, I would anticipate that the market goes looking towards the 4400 level, as the S&P 500 tends to move in 200 point increments. We are most certainly in an uptrend, and that obviously is the way the market has been trading for quite some time.

S&P 500 Video 03.05.21

If we turn around and drop to the downside, the 4100 level should continue to be important as it was previous support and is of course a round figure. If a break down below there, then it is likely that the market will go looking towards the 4000 level, where the 50 day EMA and the gap from earlier in the month sits, so I think that is probably going to be the “floor the market” in the short term.

All things been equal, I think that this is a market you continue to buy dips in, as the central banks around the world continue to flood the markets with liquidity, and of course the Federal Reserve is no different than any of the other ones. With that in mind, I have no scenario in which a willing to short this index but could be convinced to buy puts if we finally break down below the 3800 level.

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