S&P 500 Price Forecast – Stock Markets Continue Slow Grind Higher

The S&P 500 has been relatively quiet during the trading session on Monday as we continue to see a lot of noisy behavior overall. The market has been relatively quiet as far as the trading range is concerned, as the VIX has been absolutely crushed, but one thing that you need to keep in mind is that we do continue to grind higher more than anything else. In other words, short-term pullbacks probably offer value, perhaps down to the 4200 level.

S&P 500 Video 15.06.21

If we were to break down below the 4200 level, then we will threaten the 50 day EMA at the 4140 handle, and then perhaps after that the 4000 level which for me is the “floor in the market”, which sits right at where we also have a gap. All things been equal, I think that we do not pull back below there, but if we were then I would be a buyer of puts because the Federal Reserve will almost certainly jump into the market if it loses more than about 10%.

To the upside, the next target would be the 4400 level, which makes sense due to the fact that the market tends to move in 200 point increments, at least over the longer term. With this, I think that we are seeing the market trying to simply grind right along as it has been for ages, with central banks around the world offering massive amounts of liquidity. Quite frankly, there is no way to short the market as central banks continue to interfere in general, and therefore it is a one-way trade, although you should not be overleveraged.

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