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

The S&P 500 has been somewhat flat during the trading session heading into Wednesday, and most of the day has been quiet as we await the Federal Reserve. Ultimately, this is a market that is very bullish looking, so I think that any dip at this point in time have to be thought of as a potential buying opportunity. With this being the case, if the market were to pull back towards the 4500 level, I think there will be a lot of value hunters in that region. In fact, I would be very aggressive between there and the 4450 handle where we see the 50 day EMA.

S&P 500 Video 04.11.21

As far selling is concerned, if you been following me for any length of time at FX Empire, you know that I do not short American indices because quite frankly they are not true markets. They are injected with massive amounts of liquidity, and even if we do get a certain amount of tapering coming out of the Federal Reserve, it will not be enough to upset Wall Street. After all, the Federal Reserve works for Wall Street, not Main Street.

All things been equal, this market should continue going towards the 4800 level, which is my year-end target. I see nothing on this chart that suggests anything other than that, but if we were to break down below the 4250 level could have me buying puts, but that is about as negative as I will get when it comes to these US indices as long as liquidity continues to be a major issue.

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