S&P 500 Price Forecast – Stock Markets Continue to Pressure Major Resistance

The S&P 500 rallied a bit to break above the 4200 level, only to give it back. We are in the midst of earnings season, so it is not a huge surprise that we see so much volatility. With this being the case, I think that we will continue to look it dips as potential buying opportunities, but in the meantime, we are simply grinding sideways in trying to work off some of the froth from previous run higher. Nonetheless, central banks around the world, and especially the Federal Reserve, are going to continue to flood the market with liquidity, and that sends the stock market higher as people are looking for returns.

S&P 500 Video 30.04.21

At this point, I believe that the 4100 level underneath should be supportive, as we have seen quite a bit of action in that area recently. If we break down below there, then the market is likely to go towards the 4000 handle underneath where there is a gap. The 50 day EMA is reaching towards that area, which of course is a major technical indicator. This is a market that is in a major uptrend, and there is no reason whatsoever to try to fight that. If we break above the highs of the trading session for the day on Thursday, then the S&P 500 is likely to continue going much higher, perhaps reaching towards the 4400 level above. At this point, there is no reason to be shorting this market, but if we did break down below the 200 day EMA, I could start buying puts. That looks very unlikely at this point.

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