S&P 500 Price Forecast – S&P 500 Trying to Break Above Resistance
The S&P 500 has initially pulled back a bit during the course of the trading session on Monday, only to turn around and show signs of support. The 50 day EMA is currently going sideways at this point, and therefore I think it shows a certain amount of interest. The downtrend line as you can see has offered significant resistance multiple times, and therefore if we can break above that then I think the market is likely to go looking towards the 4500 level above. Breaking above that then opens up a longer-term “buy-and-hold” type of market.
S&P 500 Video 12.10.21
If we do turn around a break down below the bottom of the candlestick for the trading session on Monday, then it is likely that we could go looking towards the 4250 level. The 4250 level is an area that has been important multiple times, and as long as we stay above that level, then it is likely that buyers will continue to look at pullbacks as opportunities to pick up a little value.
That being said, if we were to break down below the 4250 level, then I would be a buyer of puts as I think we could go much lower. At that point in time, the market would likely to see quite a bit of a flush lower, but we also recognize that the Federal Reserve will do anything it can to save the market if it falls enough, so I believe that 4000 would be the absolute floor. If you buy puts, then you do not have to worry about losing anything more than your initial premium.
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