S&P 500 Price Forecast – Stock Market Drifts Lower Into the Weekend

The S&P 500 has gapped a little bit lower to kick off the trading session on Friday, but then turned around to fill that gap rather quickly. After that, we have drifted a little bit lower as more money seems to be flowing into bonds at this point. Nonetheless, we are still very much in an uptrend, and I certainly would not be a seller of this market. The S&P 500 clearly has plenty of buyers underneath and we also have this massive uptrend line that will come into the picture.

S&P 500 Video 19.07.21

Furthermore, we also have the 50 day EMA and the 4000 level both offering support. In other words, there is no way to short this market although I would not be surprised at all to see a bit of a pullback at this juncture. That pullback should be a nice opportunity to pick up a bit of value in this market, and I think plenty of value hunters will be out there. However, if we were to break above the 4400 level, it is likely that we could go looking towards the 4500 level, which is the next psychological round figure. After that, then 4600 is targeted as market does tend to move in 200 point increments from what I have seen of the last couple of years.

If we break down below the 4000 level, I might be interested in buying puts, but that is about as bearish as I would get in a market that is so clearly manipulated by the Federal Reserve. The University of Michigan consumer sentiment number came out at 80.6 for the month during the session, which was a well below what was anticipated so perhaps traders are starting get a little bit concerned about the consumer.

For a look at all of today’s economic events, check out our economic calendar.