S&P 500 Price Forecast – Stock Markets Continue to Reach Towards Highs
The S&P 500 has rallied a bit during the course of the trading session on Monday as we continue to see a move to the upside going forward. We are sitting just above the 4400 level in the futures market in that suggests that we could go looking towards the 4500 level. That of course is an area that will attract a lot of attention, so I would anticipate a little bit of a struggle in that area. Remember, we are almost through earnings season, and it has been fairly strong, but we also have the jobs number at the end of the week that could put a bit of a lid on the move over the next couple of days. Because of this, I believe that this is a market that is trying to build up enough momentum to go higher.
S&P 500 Video 03.08.21
Underneath, the 50 day EMA and the uptrend line both would offer support, just as the 4200 level will. Breaking down below there could very well open up the possibility of a move down to the 4000 handle, which is a large, round, psychologically significant figure. That is also an area where we would have a lot of options barriers that come into play as well. Breaking down below there could open up the possibility of buying puts, and at this juncture that that is as negative as I would get it, due to the fact that the Federal Reserve might get involved either verbally or through some type of quantitative easing program. Because of this, the market is one that you can either be long of or on the sideways unless of course you are playing options.
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