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

The S&P 500 initially pulled back a bit during the trading session on Tuesday but then rallied again as we continue to hang about the 3900 level. Ultimately, this is a market that is overstretched so I do think that there is an opportunity to simply sit on the sidelines and wait for some type of value to appear. I would be very interested in the 3800 level, and then again near the 50 day EMA as long as the uptrend line. The market ultimately continues to see a lot of noise, but volatility continues to be something that could jump into the market.

S&P 500 Video 10.02.21

All things been equal, I have no interest in shorting this market, because it is far too strong, but we are getting a bit stretched so I think all work doing is waiting for value to turn in order to take advantage of the possibility. I would not be a buyer at this point, simply due to the fact that it is overdone, but I do believe that given enough time we will go looking towards the 4000 level. The 4000 level will be a major resistance barrier from a psychology standpoint, so keep that in mind. Nonetheless, I think that if you are cautious and slow about adding a bullish position, you could turn out quite profitable. Even if we broke down below the uptrend line, the market would more than likely find plenty of support near the 3600 level. In general, this is a market that continues to move based upon liquidity, something that the Fed and everybody else will be more than happy to throw at it.

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