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

The S&P 500 is showing signs of support right around the 3800 level, course is a large, round, psychologically significant figure, and an area where we have seen buyers jump in over the last couple of days. That being the case, I think we are eventually going to continue to grind a bit higher, but we may have a bit of sideways action ahead of us as the stock market could be thought of as being just a little overdone in the short term. Nonetheless, I also like the uptrend line underneath that I have marked on the chart, which is fully backed up by the 50 day EMA. After that, then you are looking at the 3600 level which is just below there as a potential support level.

S&P 500 Video 12.01.21

When you look at the longer-term analysis, there was a significant consolidation area between the 3200 level and the 3600 level. This 400 point level being broken out of measures for a move towards the 4000 level based upon breaking out at that 3600 level. At this point, I think that dips continue to be bought into, so I have no interest in shorting this market, especially as it seems like the massive amount of stimulus is going to continue to be exactly what we see, and that of course will continue to levitate stock markets. There is a bit of rotation under the surface though, so that may be part of what we are seen as far as hesitation is concerned. At the end of the day though, a widening of the bullish companies in the S&P 500 is good for sustainability.

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