S&P 500 Price Forecast – Stock Markets Continue to Reach Towards the Sky
The S&P 500 initially sold off during electronic trading early on Tuesday, but then turned around to show signs of life again after the CPI numbers came out. Because of this, it looks like the market will simply be willing to go ahead and follow the overall trend, which is exactly what you would expect all things being equal. I still believe at this point in time that the market is going to continue to look at 200 point intervals as the way to go, meaning that we will probably be targeting the 4400 level given enough time.
S&P 500 Video 14.07.21
To the downside I would anticipate those 200 point increments come into play as well, so I am looking at the 4200 level as the first potential support area, especially now that the 50 day EMA is starting to come into the picture. Breaking down below their opens up the possibility of going down to the 4000 handle, which also features a bit of a gap that will cause some support. The psychologically important 4000 level is where I would be a buyer of puts if we were to break below it. As far as selling is concerned, you guys should know by now that I do not do this when it comes to US indices.
At this point, we should continue to see more of the “buy on the dips” scenario going forward as the S&P 500 has been extraordinarily resilient. It should also be noted that the NASDAQ 100 is reaching towards the psychologically important 15,000 level, so if we break above that level over there, it could cause a bit of a tailwind for this market as well.
For a look at all of today’s economic events, check out our economic calendar.