S&P 500 Price Forecast – S&P 500 Reaches Towards 4300

The S&P 500 has rallied ever so slightly during the trading session on Thursday as we continue to see upward pressure in general. It should be noted that the jobs number comes out on Friday, and of course there is the Independence Day holiday over the weekend in the United States, so it is very possible that the Friday session is noisy at first, and then quickly dies off. Because of this, I would not expect too much beyond roughly 10 o’clock in the morning New York time.

S&P 500 Video 02.07.21

Looking at the chart, I like the idea of buying pullbacks as it gives us an opportunity to pick up a bit of value in what has obviously been a very strong uptrend. Ultimately, this is a market that I think continues to see a lot of support underneath, especially at the uptrend line and the 50 day EMA which is walking right along with it. The market did break above the 4300 level early in the day, but it looks like we are stagnating a bit as one would anticipate at a large, round, psychologically significant figure like this one.

If we were to break down below the 50 day EMA and the uptrend line, then I think we could go looking towards the 4000 handle. That would obviously be a strong pullback, for roughly 8% or so. At that point, there is a lot of psychological importance attached that figure in of course the 200 day EMA will be coming into the same neighborhood. Beyond that, we also have a gap and of course the Federal Reserve will step in to save everyone.

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