S&P 500 Price Forecast – Stock Markets Continue to Eye All-Time Highs
The S&P 500 has gone back and forth during the trading session on Wednesday as it is the end of the quarter and a lot of rebalancing is almost certainly going to be a feature of the day. With that being the case, the market is likely to see the 4000 level above as a potential barrier/target. I do think we eventually break above there and go looking towards the 4100 level, as a breaking of the 4000 level would be the “green light” for a continuation of the overall upward momentum.
S&P 500 Video 01.04.21
To the downside, the 3950 level has offered support over the last couple of days, and of course the 3900 level itself is supportive. After that, we have the 50 day EMA which will attract a certain amount of attention in and of itself, because quite frankly it is one of the most widely followed technical indicators. After that we have the 3800 level, where I would draw a “line in the sand.”
I do not sell US indices, I learned a long time ago that they are highly manipulated, and therefore you really cannot do such things. However, that does not mean that I will be willing to buy a put underneath the 3800 level, because I think it would continue to offer value in the sense that you already know how much you are risking, and we could make a little bit of money on the way down. The attitude of the market is one that wants to go higher given enough time, but I think at this point it is going to be a bit of a fight. Eventually we should see some conviction, and I think that might happen as we enter YouTube.
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