S&P 500 Price Forecast – Stock Markets Continue to Elevate

The S&P 500 has pulled back initially to kick off the Friday session, but has found the 3900 level to be supportive enough to turn things around and form a supportive looking candlestick. At this point, it looks like we are trying to go to the upside and reach even higher, with a natural magnet being the 4000 handle. After all, the 4000 handle is a large, round, psychologically significant figure that a lot of people will be paying close attention to, and it is also worth noting that we are currently trying to fill the previous target of 4000 based upon the consolidation underneath that had that “measured move.”

S&P 500 Video 15.03.21

Regardless, the one thing that we do know is that the Federal Reserve will not allow this market to drop very far. Ultimately, the market should continue to see a lot of “buy on the dips” type of attitudes out there, with the 50 day EMA underneath offering support. The uptrend line underneath also offers plenty of support as well, so having said that it makes quite a bit of sense that the uptrend should continue. In fact, I do not have a selling signal that I can think of at this point, but if we did break down below the 3600 level, then it is likely that we would see further falling in price, but at that point I would be a buyer of puts because shorting an index in the United States is a very dangerous thing to do as we have seen over the last 13 years.

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