S&P 500 Price Forecast – Stock Markets Continue Sideways Chop

The S&P 500 initially tried to fall during the trading session on Wednesday but then turned around to show signs of strength again. That being said, I do think that it is only a matter of time before we try to get back to the 4000 handle, but I do not know if we can get there very easily. After all, there are a lot of concerns out there when it comes to interest rates, so they start to rise again, then it is likely that we will continue to struggle. Alternately, if rates drop, then it is likely that we could go much higher.

S&P 500 Video 25.03.21

Underneath, the 50 day EMA is sitting at the 3850 handle, followed by the 3800 level underneath. After that, we then have the 3700 level which is also supportive based upon the most recent reaction and of course the fact that the large figure attracts quite a bit of attention. I think at this point in time it is very likely that we will see a bit of a pushback, but clearing that area allows the market to go looking towards the 4100 level.

If we were to break down below the 3700 level that I might buy puts, but I certainly would not be a seller of the market as it tends to be bail out every time something bad happens by the likes of Jerome Powell. I like buying dips, but I also recognize that we are going to continue to see more noise than anything else going forward. Keep your position size relatively small though, because the choppiness is going to be a major problem.

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