S&P 500 Price Forecast – Stock Markets Continue to Reach Higher

The S&P 500 has gone back and forth during the trading session with a slightly negative attitude on Tuesday. Quite frankly, this is a market that is far too over bought to be jumping in now, so I like the idea of taking a bit of a breather and perhaps pulling back in order to find a bit of value. The value could be found at multiple levels underneath, not the least of which would be the 4600 level. After that, that we have 4550 and the 4500 level. It is worth noting that the 50 day EMA is reaching towards the 4500 level and sloping higher as well.

S&P 500 Video 10.11.21

The market continues to see a lot of upward momentum, but you can only have so much denial of gravity before something ugly happens. Quite frankly, the market pulling back just a bit could offer quite a bit of value and perhaps help with the momentum of the longer-term trend. Quite frankly, we sooner or later have to recognize that gravity exists, and that it is likely what we are seeing here, a simple realization that we need to settle back down.

If we break down below the 50 day EMA, then it is possible that we could go looking towards the 4250 level, which is a major support level, especially as the 200 day EMA is approaching it. That is the “floor the market” going forward, as it would represent a bit of it 10% retracement, something that quite common in the stock market and would be healthy. I do not think we get that low, but more than anything else, look at any pullback as a bit of value that you can take advantage of.

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