S&P 500 Price Forecast – Stock Markets Continue to Reach Towards All-Time Highs

The S&P 500 has rallied a bit during the trading session on Monday to show signs of life again. By doing so, the market looks as if it is ready to go much higher, and therefore go looking towards the 4600 level at the very least. I suspect that will merely be a short-term barrier, based upon psychology more than anything else. The market will continue to see plenty of buyers, as the reopening trade continues to be a major driver of where we go next. At this point, it simply looks as if it is a “buy on the dips” type of scenario going forward.

S&P 500 Video 26.10.21

If we turn around and fall significantly, I suspect we could go as low as the 50 day EMA, which is sitting just above the 4400 level, but I do not see that as a major problem to overcome, and it is very likely that we will see plenty of value hunters down in that area. Quite frankly, you simply cannot short the S&P 500 anytime soon, mainly due to the fact that the Federal Reserve will do whatever he can to keep the market afloat.

Beyond that, there should continue to be a lot of people looking to get involved in the reopening momentum, and therefore I do think that the 4250 level underneath will continue to be a massive support level underneath. If we were to turn around a break down below there, then it is possible that I could be a buyer of puts, but that is about as negative as I would get in this market.

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