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

The S&P 500 has rallied significantly during the course of the trading session on Thursday, as we are reaching towards the 3800 level. It is obvious that the market is ready to go higher, due to the fact that there is a massive amounts of stimulus just waiting to happen, and quite frankly after yesterday’s activity at the Capitol Hill not been able to knock the market back down, it shows just how one-sided this market is at the moment. For the last 13 years, the S&P 500 has move higher based upon the Federal Reserve balance sheet, and of course all of that cheap and easy money.

S&P 500 Video 08.01.21

To the downside, we still have a massive uptrend line, and of course the 50 day EMA sitting just below there. The 3600 level does offer support, and at that point in time I think that there would be even more value hunting jumping into the market to push this market to the upside. We are essentially in the uptrend channel that you can see, and therefore it makes sense that we will see a continued move back and forth in this overall momentum. Looking at the previous consolidation being 400 points tall, a break above the 3600 level should move this market towards the 4000 handle. That is my longer-term target, but it does not necessarily mean that we go straight up in the air like that.

Keep in mind that Friday is Non-Farm Payroll in the United States, but at this point I suspect that will probably be a moot point.

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