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

The S&P 500 continues to see a little bit of lackluster performance near the 4200 level, an area that has of course been important more than once. That being the case, I think the market probably starts to look at dips as potential buying opportunities, as the uptrend line underneath should continue to stabilize the market, right along with the 50 day EMA. Furthermore, we have liquidity measures they continue to push the markets higher. That being said, it has been very noisy, the market is likely to see a lot of dictation in confusion. If we can break above the recent all-time highs, then the market is free to go looking towards the 4400 level which is my intermediate-term target.

S&P 500 Video 27.05.21

A breakdown below the 50 day EMA and the uptrend line signals that we could go looking towards the gap underneath, which is right above the psychologically significant 4000 level. With that in mind, the market could very well see a lot of value hunters coming into that area. If we were to break down below there, then I think buying puts might be about as bearish as I get as I would expect to see the 200 day EMA offer support there. Buying puts gives you the opportunity to limit your losses in what is still a massive uptrend. When you look at the history of the S&P 500 over the last 13 years, any massive selloff has been rather short-lived, so that is why I choose use options to take advantage of negativity. As far as buying is concerned, I am much more comfortable riding the wave.

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