S&P 500 Price Forecast – Stock Market Shows Resiliency

The S&P 500 initially pulled back during the course of the trading session on Thursday as we reached towards the 50 day EMA before turning around and showing signs of strength. Quite frankly, the 4100 level has been sliced through quite handily, so it suggests that the uptrend is going to continue, and I do think that we go looking towards the 4200 level. If we can clear the 4200 level, then it is very likely that the market is going to continue to go higher, perhaps reaching towards the 4400 level. Furthermore, the uptrend line continues to look useful, so I would pay close attention to it as stocks have been following right along for some time.

S&P 500 Video 21.05.21

To the downside, if we were to break down below the uptrend line, then it is possible that we could go looking towards the 4000 handle, an area that of course is a large, round, psychologically significant figure. There is a gap sitting just above the 4000 handle and as a result I think there will be a lot of interest in that area. If we were to break down below there, then I might be willing to buy puts, but I would not be willing to short this market as it is so bullish and of course highly manipulated by the liquidity coming in from central banks. We obviously have found value in this general vicinity, so it should continue to see buyers push to the upside. This does not mean that is going to be easy, but I do think the occasional short-term pullback should be a nice buying opportunity.

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