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

The S&P 500 has gone back during the course of the trading session on Tuesday as we are testing the idea of the 4500 level being support. If we can stay above there, the market should continue to go much higher, perhaps reaching towards the 4600 level after that. The market tends to move in 200 point increments, and therefore I think 4600 will eventually be tested. If we break down below here, then the uptrend line and the 50 day EMA both come into the picture. Those both should be paid close attention to, and I think it would be a nice pullback that people would be willing to take advantage of.

S&P 500 Video 01.09.21

If we were to break down below that level, then I would be a buyer of puts, but that is as bearish as I get when it comes to the US indices, because quite frankly the Federal Reserve will do whatever he can to push things higher. Furthermore, the traders on Wall Street seem to see some type of narrative to push stocks higher regardless of what happens, and therefore I think at this point in time it is a simple matter of trying to find value and “cheap stocks.”

All things been equal, this is a market that I do think that is a market that you will find reasons to go higher no matter what happens, because that is the game that we have been playing for the last 13 years. Yes, the Federal Reserve is starting to pay lip service to the idea of tapering, but at the end of the day that is going to be a slow and gradual process, thereby allowing Wall Street to continue to push things higher.

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