S&P 500 Price Forecast – Stock Markets Continue to Press Towards Highs

The S&P 500 pulled back towards the 3800 level before bouncing in order to show signs of strength again. The market is trying to break out to the upside, and at this point in time I do think that it is probably only a matter of time before that happens. With that being the case, I anticipate that this is a market that will continue to see buying on the dips, but with the Non-Farm Payroll numbers coming out on Friday, it is very likely that we may get a little bit of volatility between now and then. If we do pull back from here, is very likely that we will continue to see value hunters coming back into what is a very obvious uptrend.

S&P 500 Video 05.02.21

The 50 day EMA sits just above the uptrend line, and therefore it is very likely that we will continue to see that area offer a certain amount of support. We are in an uptrend and that should continue to be the case going forward. I think ultimately the market is going to go looking towards the 4000 level, based upon the extrapolated move from the consolidation area that we broke out of at the 3600 level. All things being equal, if we do get some type of pullback after the jobs number, that will more than likely just end up being yet another buying opportunity in a market that seems to have only one thing on his mind, liquidity. Yes, there is the headline occasionally about the COVID-19 vaccinations going well, but at the end of the day Wall Street continues to function on cheap money.

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