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

The S&P 500 has rallied a bit to kick off the trading session on Wednesday as we continue to see a lot of noise coming back into the marketplace. With this being the case, I like the idea of buying short-term pullbacks, as it gives you an opportunity to find value in a market that is so very obviously bullish. After all, the Federal Reserve is going to keep monetary policy as loose as possible for the foreseeable future, and that is with stock markets like.

S&P 500 Video 22.07.21

Pullbacks at this point in time will continue to see a lot of support at the 50 day EMA and of course the uptrend line. Beyond that, we have plenty of areas that should see support as well, not the least of which would be the 4200 level, and then of course the 4000 level which is a large, round, psychologically significant figure and of course an area where we see a little bit of a gap. After that, the 200 day EMA is racing towards that level as well, so for my money all of that is essentially the “floor of the market.”

At this point, I have no interest in shorting the market and would only be a buyer of puts if we break below that 4000 level on a daily close. All things been equal, this is a market that I think continues to be a “buy on the dips” type of market, and therefore I do not see any interest in trying to get short. If we can break above the 4400 level, it is likely that the market could go looking towards the 4500 level given enough time.

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