Advertisement
Advertisement

S&P 500 Price Forecast – Stock Markets Choppy on Quad Witching Friday

By:
Christopher Lewis
Published: Mar 19, 2021, 16:56 UTC

Stock markets were all over the place on Friday as we had quad witching going on, with four different options markets expiring at the same time.

S&P 500 Price Forecast – Stock Markets Choppy on Quad Witching Friday

In this article:

The S&P 500 initially fell during the trading session on Friday and then started to chop around as we are focusing on quad witching, which is when four different options markets have quarterly expirations at the same time. Furthermore, we have been paying close attention to the 10 year yield, which of course has been spiking from time to time. With that being the case, I think that the market is probably going to continue to be very noisy, but ultimately the S&P 500 likes to go higher over the longer term. It is probably only a matter of time before the Federal Reserve steps and if we get out of control, so I still think that the market is going to go looking towards the crucial 4000 level.

S&P 500 Video 22.03.21

Underneath, even if we did break down a bit, I think that the 3800 level probably offers quite a bit of support, as we have the 50 day EMA sitting just above it and of course we have seen a bounce from that region recently as well. In fact, it is not until we break down below the most recent swing low that I would consider buying puts, because I do not short these indices in America as they are so highly manipulated at times.

If and when we can break above the 4000 level, then it is likely that we go looking towards the 4100 level rather quickly, because it will be such a psychologically important victory for the bulls. That being said, I think it is going to take quite a bit of work to get above it.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement